Revenue Income

Question 1

Revenue Income

Answer 1

Money that comes into the business from performing it’s day-to-day function of selling goods or providing a service

Question 2

Sales

Answer 2

• Sales, or sales turnover, is money coming in from the sales of goods or services. For example, a jeans shop has money coming in each time a customer buys a pair of jeans
• Sales turnover is therefore determined by the prices charged and the number of customers
• Sales can be either: cash sales (the customer pays there and then) or credit sales (the customer buys then but pays at a later date)

Question 3

Rent Received

Answer 3

• A business that owns property and charges others for use of all or part of that property will receive rent as their main source of income

Question 4

Commission Received

Answer 4

• A business may sell products or services as an agent of another business
• They sell another business’s products on their behalf and, for each sale they make, they get paid a percentage on that sale, this percentage is called commission

Question 5

Interest Received

Answer 5

• Interest received is money earned on savings or lending
• E.g. If a business has a positive bank balance it will receive interest on this, this acts as revenue coming
  into the business
• Equally a business may lend money to another person or business and interest will be charged to the lender and the business lending the money will receive interest as a form of revenue

Question 6

Commission

Answer 6

A commission is a fee paid to a salesperson in exchange for services in facilitating or completing a sales transaction

Commission could be a flat fee or a percentage of the revenue, gross margin or profit generated by the sale

Question 7

Discount Received

Answer 7

Discount received is when a business is given a percentage off a sale, normally in return for quick payment or a bulk order, this reduces the costs to the business