27. Which of the following statements is correct? For a business that buys raw materials and manufactures a product:

A. “Revenue” or “Turnover” or “Sales” is all money that comes into the business, including items such as bank interest received.

B. “Revenue” or “Turnover” or “Sales” is money that is left over once the cost of the raw materials is taken off.

C. “Revenue” or “Turnover” or “Sales” is the money that has actually been received from people buying goods.

D. “Revenue” or “Turnover” or “Sales” is the sales value of the goods that have been sold in the financial year.

Answer : D

Revenue (Turnover or Sales) is the sale of the product (or provision of the service) that is the main feature of the business. Money from other sources of income, such as bank interest received, is NOT part of “Revenue”. Most businesses sell items on credit. The SALE is the important feature – not when the money is received.