Revenue

Revenue refers to the total income generated from a company’s primary business activities, such as the sale of goods or services, before deducting any expenses. It is calculated by multiplying the average sales price by the number of units sold and represents the top line of an income statement.

Net Income: Net income, often called the bottom line, is obtained by subtracting all operating expenses, taxes, interest, and other costs from the total revenue. It reflects the company’s actual profitability after accounting for all expenditures.

Example: If a company sells 10,000 units of a product at ₹500 each, the revenue is ₹50,00,000. If total costs (including production, salaries, and taxes) are ₹35,00,000, then the net income is ₹15,00,000.