My teacher has asked me to give a presentation about an imaginary company. According to the instruction, I should introduce both income and turnover of that company, but I was really confused about the difference between these two words.
After some googling, I found "income" means "money received, especially on a regular basis, for work or through investments.", whereas "turnover" means "the amount of money taken by a business in a particular period." However, the difference is still not clear to me. Does a company's "income" include its "turnover" in some sense, or vice versa?
The instruction is posted here as the context:
Your dream company:
- What is your company called?
- ……
Figures for the last year:
- What was its turnover?
- How was this divided up by region(country)?
- What was its final income?
- What % was spent on Research & Development(R&D)?
Best Answer
The amount of money a company produces by selling items is called its
which also can be referred to as
whereas
is the amount of money a company makes after certain reductions, e.g. cost of goods sold.
So, income includes turnover in its calculation.
Here is an example Income Statement which shows Turnover as a top-line item