Amount received from sale of goods is called 'Revenue' and the cost of goods sold is called 'Expense' . Surplus of revenue over expenses is called 'Income'

Income vs Revenue
Income and revenue are often used interchangeably, but they have distinct meanings in accounting and finance. Here's a breakdown of the key differences between the two:

Definition
- Income: Income refers to the money a company earns from its primary business activities, such as sales of goods or services. It is the net profit after deducting expenses and taxes.
- Revenue: Revenue is the total amount of money generated by a business through its sales of goods or services before any expenses are deducted.

Timing
- Income: Income is typically realized after deducting expenses and taxes from revenue. It represents the net profit that a company earns.
- Revenue: Revenue is the top line of the income statement and does not account for any expenses or taxes.

Measurement
- Income: Income is a measure of profitability and reflects the overall financial health of a company.
- Revenue: Revenue is a measure of the total sales or income generated by a business over a specific period.

Importance
- Income: Income is crucial for assessing a company's financial performance and profitability.
- Revenue: Revenue is essential for evaluating a company's sales growth and market share.
In conclusion, while income and revenue are related concepts, they serve different purposes in financial analysis. Revenue represents the total sales generated by a business, while income reflects the net profit after deducting expenses and taxes. Understanding the distinction between the two is essential for evaluating a company's financial performance accurately.