A BASIC BOOKKEEPING AND ACCOUNTING COURSE
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Definition: Gross Revenue

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Definition of Gross Revenue

What is Gross Revenue?

Gross Revenue is the total amount of a business's income and earnings before subtracting any costs. Costs are subtracted from Gross Revenue to calculate gross profit and net profit. The term "gross" means large amount, the term "net" means smaller amount, and the term "revenue" means incoming gains, as in gains in cash from sales or interest earned from bank accounts.

For example, the Gross Revenue from selling a cookie is the amount you sell the cookie for before subtracting the costs you acquired to make the cookie, in other words the price the customer paid for the cookie. Let's say it costs 50 cents to make a cookie and you sell it for $4. The Gross Revenue from the sale is $4 and the Gross Profit from the sale is $3.50.

Gross Profit = Cookie Revenue - Cookie Costs
Gross Profit = $4 - $0.50
Gross Profit = $3.50

Gross Revenue can be calculated at various stages. For example, a business can calculate its gross revenue on shoe sales separate from coat sales. Since this is the case, gross revenue needs to be carefully defined so that it is not misinterpreted, as in total gross revenue from all income sources verses total gross revenue from shoe sales.

Continue Learning about Gross Revenue in an Interactive Bookkeeping Textbook

Over 4+ Hours of Free Lessons

The Addictive Accounting training course has a purpose:

To help you quickly master the fundamentals of bookkeeping and accounting!

  • Simplified - created for students and business owners
  • Comprehensive - an interactive bookkeeping and accounting textbook
  • Practice Make Perfect - in a hands-on bookkeeping simulator
  • Learn Finance - cash, profit, equity, and balance statements
  • Quiz Yourself - test your comprehension with instant feedback
  • Career Boost - communicate finance with confidence
  • At Your Pace - complete the course in a week or a weekend​
  • Teacher's Aid - can be used as an auxiliary tool to enhance learning
  • CPA Exam Prep - review fundamentals to greatly improve your score

​If you are a student who is planning on studying accounting, or a student who is struggling to learn the concepts, this course is for you. If you want an A grade, take this prep course! If you are business owner who wants to fully understand their personal bookkeeping, this course is also for you.

Practice Gross Revenue in an Accounting Simulator

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Rather than just read about gross revenue, learn and practice calculating gross revenue as a bookkeeper in a hands-on accounting simulation. Learn more about our accounting simulation app or see what you can learn for free in the Addictive Accounting course.

Over 4 Hours of Free Course Content,
No Ads,
​and No Personal Data Collected​

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  • Home
  • Course Content
  • Accounting Simulator
  • Knowledge
    • Questions
    • Definitions
    • Bookkeeping & Accounting Tutorials
  • Support
    • About Us
    • Contact Us
    • Get Notified