Revenue is the value of sales made in a trading period
One million exam papers were marked while I was an A-level chief examiner. Having read a lot of that million, here are ten things examiners hate to see in A-level business answers.
One of my students recently told me that ‘selling off the two smaller divisions will bring in extra revenue for GKN, allowing it to build on its stronger divisions’. What? Bring in cash, yes, but not revenue. Revenue is the value of sales made in a trading period. Cash brought in from a one-off source such as the sale of a fixed asset must never be treated as revenue.
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