Concept in Definition ABC

The word revenue is part of the accounting and financial vocabulary but is also used in the language current. This happens because its economic significance makes it extrapolated to everyday life situations.

The economic meaning of the term

From an economic point of view, revenue is spoken of as a synonym of profit or profitability in relation to money

It must be borne in mind that money in a bank can generate benefits in the form of interest. Well, when a certain capital generates a profit, it is said to produce a profit. This term is also used when an investment is satisfactory. On the other hand, if a person has money saved and wants to deposit it in a bank, they must report on what income the different financial products offer (fixed-term accounts, bonds, remunerated accounts, etc.).

The concept of revenue is equivalent to others, such as dividend, performance, rent or interest. Typically, the term revenue is used in a Unit monetary or in percentage. Thus, someone can say that they have obtained a revenue of $ 50 in a checking account after 12 months and with an initial capital of 1000 dollars or refer to the return in terms of interest banking.

In relation to interest, it is worth the pain Remember that to calculate the simple interest of a loan you have to multiply the principal (the amount of money borrowed) by the return (percentage of the interest of the loan) by the time to repay the loan and all this divided by a correction index (if the time is measured in years it would be 100 and if it is measured in months it would be 1200).

The everyday meaning of the word

If a political leader makes a intervention before the media communication and the next day he is praised for it, someone could say that he has obtained political gain, that is, his intervention has been positive, profitable and useful. With this example it can be seen that the idea of ​​revenue is used in relation to the final balance of a stock. Thus, it could be said that a coach's bet has not obtained any return if at the end of a match his team has been defeated. Therefore, something is worthless when it is useless, fruitless, or negative.

The term revenue has an economic sense but it is used figuratively in very different contexts. Something similar happens with other economic concepts, such as the word credit (there are people who do not have credit in the sense that his word does not offer guarantees or that he does not have sufficient credibility with the the rest).

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