Which term describes money generated from selling goods or services?

Which term describes money generated from selling goods or services?

• A. Profit
• B. Turnover / Sales Revenue
• C. Cash flow
• D. Net income

Answer: (B)

Turnover, also called sales revenue, is the total money a business brings in from selling its goods or services in a given period. It’s the inflow from trading activities and sits at the top of the income picture, before any costs are deducted. That’s why it’s the best description for “money generated from selling”—it captures the full value of what was sold. The other terms describe different things. Profit (or net income) is turnover minus costs and expenses, so it shows what’s left after running the business. Cash flow looks at the actual cash moving in and out, which can differ from turnover if sales are on credit or if cash is tied up in stock or owed to suppliers. For example, a shop might have turnover of £100,000 in a month, but after paying £70,000 in costs, the profit is £30,000.

Turnover, also called sales revenue, is the total money a business brings in from selling its goods or services in a given period. It’s the inflow from trading activities and sits at the top of the income picture, before any costs are deducted. That’s why it’s the best description for “money generated from selling”—it captures the full value of what was sold.

The other terms describe different things. Profit (or net income) is turnover minus costs and expenses, so it shows what’s left after running the business. Cash flow looks at the actual cash moving in and out, which can differ from turnover if sales are on credit or if cash is tied up in stock or owed to suppliers. For example, a shop might have turnover of £100,000 in a month, but after paying £70,000 in costs, the profit is £30,000.