Net Income = Revenues – Expenses + Gains – Losses. Profit is one of the most important elementson financial statements. Both revenues and Profitsare important to measure and to assess the company’s performance and prospects. Generating revenues is highly important for a business organisation a company cannot make profits unless revenues are generated on a regular basis. The very essence of Profitability is Revenue. And in order to get greater profits, revenues must be raised. There are times when revenue growth is more important than profits. There may be cases where a company could have high revenues but still not be profitable, while on the other hand there may be instances where a company could have very low revenue, but nevertheless turn most of that revenue into profit for the company’s owners. Hence, it is crucial for the business organisation to look at revenues and findways to raise revenues, so that a business may attain efficiency, profitability and sustainable success.]]>