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What is the difference between revenues and earnings?

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What is the difference between revenues and earnings?
posted Jun 22, 2017 by Chetan Hindu

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1 Answer

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A U.S. corporation's revenues are reported on the top line of its income statement, while its earnings are reported on the bottom line (or near the bottom) of the income statement.

Revenues is the gross amount earned from selling goods or providing services during the period shown in the heading of the income statement. In other words, revenues is the amount earned before deducting the cost of goods sold, expenses, and losses.

Earnings is the net amount earned after deducting the cost of goods sold, expenses and losses. It is often presented as net earnings or net income. When a corporation's stock is publicly-traded, the earnings must also be reported on the income statement as earnings per share (EPS) of common stock.

answer Jun 23, 2017 by Shantanu Arora
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