Revenue

Revenue is defined as the price charged to customers for good sold or services rendered.  When goods or services are sold to a customer, the company is either paid in cash or an accounts receivable is created.  The revenue for a given period of time is equal to the inflow of cash and receivables from sales delivered to customers in that same period of time. 

The flow of revenue into a company creates an increase in owner's equity since cash and accounts receivables will increase the total assets of a company.  Stated another way, increases to assets of a company will cause an increase to owner's equity.   The revenues of a company are reported on the Income Statement.