How is 'revenue' defined in accounting?

In accounting, 'revenue' is defined as the income generated from normal business operations, commonly referred to as sales or turnover. This definition encompasses the earnings that a company receives from selling its goods or providing its services before any expenses or costs are deducted.

Focusing on the core aspect of revenue, it reflects the operational activities of a business. For instance, a retail store earns revenue through the sale of merchandise, while a service-based company generates revenue by providing services to its clients. This fundamental concept is crucial for understanding a company's financial health and performance, as revenue figures provide insights into a company's ability to generate income and sustain its operations.

In contrast, the other options do not accurately represent the definition of revenue. Profit after all expenses have been paid refers to net income, which is calculated after deducting all costs from revenue. The total amount spent by the business pertains to expenditures and expenses rather than income generated. Lastly, the amount saved by a business over a period does not relate to revenue; instead, it refers to retained earnings or savings rather than active income generation.