Revenue refers to the income generated from normal business operations and other activities. It is a crucial component of a company's financial performance and is typically categorized into different types based on the source or nature of the income. Below, I will explain the common types of revenue and identify which of the following is not a type of revenue.

Common Types of Revenue

1. Operating Revenue:
   This is the income generated from a company's primary business activities. For example, a retail store's operating revenue comes from selling products, while a software company's operating revenue comes from selling licenses or subscriptions.

2. Non-Operating Revenue:
   This refers to income generated from activities that are not part of the core business operations. Examples include interest earned on investments, rental income from property, or gains from the sale of assets.

3. Gross Revenue:
   This is the total revenue generated by a company before any deductions, such as discounts, returns, or allowances. It represents the overall sales figure without considering costs.

4. Net Revenue:
   This is the revenue remaining after deducting returns, allowances, and discounts from gross revenue. It provides a more accurate picture of the actual income earned by the company.

5. Recurring Revenue:
   This type of revenue is predictable and consistent, often generated through subscription-based models or long-term contracts. Examples include monthly subscription fees for software services or annual maintenance contracts.

6. Deferred Revenue:
   This refers to income received in advance for goods or services that have not yet been delivered. It is recorded as a liability on the balance sheet until the product or service is provided.

7. Other Revenue:
   This category includes miscellaneous income that does not fit into the above categories, such as royalties, licensing fees, or one-time gains.

Which of the Following Is Not a Type of Revenue?

Now, let's consider the options provided and determine which one does not qualify as a type of revenue:

• Operating Revenue: This is a valid type of revenue, as it comes from core business activities.
• Non-Operating Revenue: This is also a valid type of revenue, as it includes income from secondary activities.
• Gross Revenue: This is a valid type of revenue, representing total sales before deductions.
• Net Revenue: This is a valid type of revenue, representing income after deductions.
• Recurring Revenue: This is a valid type of revenue, often associated with subscription models.
• Deferred Revenue: This is a valid type of revenue, representing advance payments.
• Other Revenue: This is a valid type of revenue, covering miscellaneous income.
• Cost of Goods Sold (COGS): This is not a type of revenue. Instead, it represents the direct costs associated with producing goods or services sold by a company. It is subtracted from gross revenue to calculate gross profit.

Conclusion

Among the options listed, Cost of Goods Sold (COGS) is not a type of revenue. It is an expense that reflects the direct costs of production and is deducted from gross revenue to determine gross profit. Understanding the distinction between revenue and expenses is essential for analyzing a company's financial health and performance.