Revenue

Revenue refers to the income of a recurring nature from any source. It is the monetary expression of the aggregate or totality, of products and/or services, or of assets, transferred by an enterprise to its customers during a period of time. 

Here, the word "transferred"  may be noted. Thereby are included both : the income from sale of goods, and the income from supply of services - like consultancy, security services, liaison, agencies, etc. The three contributors to revenue are : Sale of products/goods/services; supply of firm's resources to others; sale of assets like plant, investments, etc. Adjustments for allowances, discounts, returned goods, etc. 

must be duly made. 

Expenses 

Several conceptual statements are available in respect of "expenses". Some of these are as follows : 

1. Cost of earning revenues is called expense. 
2. Whereas revenue is the monetary measure of output, expense is a measure of inputs, or resources, consumed; profit is the difference between revenue and expense. 
3. Expense is the expired cost, during a fiscal period, related directly or indirectly to the flow of goods or services into the market and of all related operations. The cost expiration is based on the decline of the usefulness of the assets. In this connection, cost of material, labour, fuel, power, repairs, maintenance, consumables, insurance, salaries, managerial remunerations, rent, taxes, welfare expenses, etc. are all included. 

Besides the above five terms, three more terms are also immediately relevant. 

Debtor 

Debtor means a person who owes money or anything else, i.e. one who is in debt. It does not include those who may have taken loans or advances from the business. 

Creditor 

Creditor means one to whom money is owing. Given that "credit" is premised on "trust" giving (on) credit implies the delivery of goods or services for payment to be made at a later date. It does not include bank loans or any other type of loans but would include overdrafts. 

Proprietor 

Proprietor is the person who makes the investment and bears all the risks connected with the business.