Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What term refers to the money received by a business for goods or services rendered?

1. Revenue

2. Expense

3. Asset

4. Liability

The correct answer is: Revenue

Revenue refers to the total amount of money that a business earns from its normal business activities, typically through the sale of goods and services. It is a key indicator of the financial health and performance of a business, as it reflects the company's ability to generate income. Revenue is not only essential for determining profit but also helps to assess the overall growth and sustainability of a business. The other terms in the question have distinct meanings within a business context. An expense refers to the costs incurred in the process of earning revenue, which ultimately helps determine net profit or loss. An asset represents resources owned by a business that can provide future economic benefits, such as cash, property, and equipment. A liability indicates the obligations or debts a company owes to outside parties. Each of these concepts plays a critical role in financial statements but does not represent the income received from goods or services rendered.