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Definition and Examples of


Explanation: Revenue is the total amount of money generated by the sale of goods or services related to a company’s primary operations.

Example: For a yoga studio, revenue includes the money received from class fees and memberships.

Potential Issues: Overstating revenue can give an inaccurate picture of financial health, potentially leading to unsustainable expansion or investment. Understating revenue, conversely, can result in undervaluing the business and might impact funding opportunities and business valuations.

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