In accounting, what do we call the amounts that are received by a company?

The correct term for the amounts received by a company is revenue. Revenue represents the total income generated by a company's business activities, typically from the sale of goods or services to customers. It is a crucial indicator of a company's financial performance and is recorded on the income statement.

Revenue differs significantly from other accounting terms. For instance, expenses refer to the costs incurred by a company in order to generate revenue, such as wages, rent, and utilities. Accounts receivable represents the amount a company expects to receive from customers for sales made on credit, indicating money owed to the company rather than money currently received. Liabilities, on the other hand, are obligations that the company owes to other parties, such as loans or accounts payable, and they do not represent cash inflow.

Understanding these distinctions is important for effective financial management and reporting. Revenue is the lifeblood of a business, reflecting its ability to operate and grow, making it a fundamental concept in accounting.