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The Complete Idiot's Guide to MBA Basics, 3rd Edition by Tom Gorman

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A Tour Through the Income Statement

Let’s examine the income statement accounts. Remember, each account started at zero at the beginning of the period (in this case, the beginning of the year) and accumulated the amount shown during that period.

Sales

Sales (also called revenue, revenues, total sales, or total revenue) is the amount of money the company took in, before any expenses, on its operations. This means that sales does not include money the company took in, for example, by selling off old property, plant, and equipment. That would be shown under other income. Nor does sales include interest earned on marketable securities, which would be included under interest income.
MBA ALERT
If you manage a company or department that produces ...

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