Adult-Gerontology Clinical Nurse Specialist (CNS) Practice Exam

What term describes the total amount of income anticipated during a defined period?

1. Net income

2. Operating income

3. Capital income

4. Revenue

The correct answer is: Revenue

The term that accurately describes the total amount of income anticipated during a defined period is revenue. Revenue represents the total earnings generated from an entity's business activities before any deductions, such as expenses and taxes, are taken into account. It reflects the inflow of economic benefits resulting from the sale of goods and services, making it a crucial metric for assessing a company's financial performance. In contrast, net income refers to the profit remaining after all expenses have been subtracted from total revenue, while operating income pertains specifically to the income generated from core business operations, excluding non-operational income or expenses. Capital income typically relates to earnings derived from investments or asset sales rather than ongoing business activities. Therefore, revenue is the most appropriate term for capturing the total anticipated income over a specified timeframe.