Term of the Day revenue

Term of the Day

revenue

  1. For a company, this is the total amount of money received by the companyfor goods sold or services provided during a certain time period. It alsoincludes all net salesexchange of assetsinterest and any other increasein owner’s equity and is calculated before any expenses are subtracted.

    Net income can be calculated by subtracting expenses from revenue.

    In terms of reporting revenue in a company’s financial statements, differentcompanies consider revenue to be received, or “recognized”, differentways. For example, revenue could be recognized when a deal is signed, when the money is received, when the services are provided, or at other times. There are rules specifying when revenue should be recognized in different situations for companies using different accounting methods, such as cash basis and accrual basis accounting.

  2. For the government, the increase in assets of governmental funds that do not increase liability or recovery of expenditure. This revenue is obtained from taxeslicenses and fees.
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Term of the Day separation of powers

Term of the Day

separation of powers

The constitutional principle that limits the powers vested in any person orinstitution. It divides governmental authority into three branches: legislative (Parliament or Senate), executive (President or Prime Minister and the Cabinet), and judiciary (Chief Justice and other judges). This principle is expressed fully in the US Constitution, but is used only as a guide in the UK.
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Usage Example
Separation of powers was created so that no one branch of government had supreme power, by splitting government authority among three different branches.