Revenue

REV-uh-noo /ˈrɛvəˌnuː/
nounB2GRESATGMAT
FormalBusiness

Income, especially when of a company or organization and of a substantial nature. For a government, it refers to the income collected from taxes and other sources.

Revenue is the total income before expenses are subtracted, distinct from 'profit.' For governments, it's the lifeblood of public services.

The story behind the word. The word 'revenue' comes from the Old French 'revenu,' which was the past participle of 'revenir,' meaning 'to return.' Imagine money 'returning' to the treasury or to an individual as income. This sense of something 'coming back' or 'returning' as a regular yield or income stream is at the heart of the word's meaning.

Word relationships

  • Income: A more general term for money received, often used for individuals or smaller entities.
  • Earnings: Often implies money earned through labor or investment, can be used interchangeably with income.
  • Proceeds: Money obtained from a particular event or activity, such as a sale.
  • Expenditure: The act of spending money; the money spent.
  • Expense: The cost required for something; money spent.

Commonly confused with

  • Profit: Revenue is total income; profit is revenue minus expenses. A company can have high revenue but low or no profit.

Word family

  • revenues (noun): Plural form, often used to refer to multiple streams of income.

Collocations

  • generate revenue
  • revenue stream
  • tax revenue
  • annual revenue
  • boost revenue
  • revenue growth

Example sentences

  • "The tech startup reported a significant increase in quarterly revenue, driven by new product launches." Reporting on a company's financial performance.
  • "The government's primary source of revenue is taxation." Discussing government finances.

Memory hook

REVENUE sounds like 'return new' money. It's the money that 'returns' to you or the government. REVENUE = RETURN

When not to use

Don't confuse 'revenue' with 'profit.' Revenue is the top line (total income), while profit is the bottom line (revenue minus expenses).

Fun facts

  • In medieval times, 'revenue' often referred to the income from an estate or property, a literal 'return' on land.

Related words

Tax, Fiscal

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