Exam 712-50 topic 1 question 360 discussion

Revenue represents the total amount of money generated by the sale of goods or services related to the company's primary operations. It is often referred to as the "top line" because it is the starting point for calculating net income, which is known as the "bottom line." Revenue is a critical measure of the economic benefit that an organization derives from its regular business activities

Answer is D. Revenue: It defines the economic benefit derived from operating the business

Not all increment of asset or cash are gained from product selling. For example, purchase of fixed asset is not a revenue gain

Answer is D.

C should be the correct answer

C is correct answer

An economic benefit is any benefit that we can quantify in terms of the money that it generates. Net income and revenues, for example, are forms of economic benefit. Profit and net cash flow are also economic benefits.

The answer is c. The economic benefit derived form operating business is Profit not revenue.