QS Study

Revenue profit is the profit which arises from the normal course of the business, i.e, Net Profit – the excess of revenue receipts over revenue expenditures.

Revenue profit is the distinction between revenue returns and revenue costs. It is earned in the regular route of the business. It consequences from the trade of goods and services at a cost more than their cost price. Revenue profit is the result of usual dealings of the business. It is shown as gross profit and net profit in doing business and earnings and failure accounts. It is accessible for the allocation to shareholders as the dividend or for creating reserve and sponsor for a variety of purposes. It shows the competence of the business. In fact, earning revenue profit is the key purpose of each business.