• 2 months ago
WHAT IS "REVENUE FROM OPERATIONS" IN ACCOUNTS. BASIC ACCOUNTING TERMS.
Transcript
00:00Ever wondered how companies actually make money? Let's uncover the secret in a minute.
00:04Revenue from operations. Sounds fancy, right? It's actually pretty simple. It's the money a
00:08business makes from its main activities. Think of a shampoo company. They earn revenue by selling,
00:13yep, you guessed it, shampoos. Now don't get lost in the bubbles. Net sales are key here.
00:17That's your total sales minus any returns. But what about financial enterprises? For them,
00:22revenue from operations includes interest earned and dividends received. So if a bank
00:26earns interest from loans, that's their operational revenue. Remember,
00:29revenue from operations is all about the core activities. And just like that, you've got it.
00:34Stay tuned for more quick and easy accounting tips with me, Sonia Satya.
00:37Don't forget to hit subscribe on Accounting by Sonia Satya for more videos. Thanks for watching.

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