ACSM Health Fitness Specialist Practice Test 2026 - Free Practice Questions and Study Guide

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What term refers to the income that a company receives from its normal business operations?

Gross revenue

Net revenue

Operating revenue

The correct term for the income that a company receives from its normal business operations is operating revenue. This term specifically refers to the earnings generated from a company’s core business activities, excluding any income derived from non-operating sources such as investments or extraordinary items.

Operating revenue provides a clear picture of the company’s ability to generate profit through its primary business activities, which is crucial for understanding its financial health. For instance, a business that sells products will have operating revenue derived from those product sales, reflecting its main income source.

Gross revenue typically refers to the total income before any deductions, which might include returns and allowances, while net revenue is the amount remaining after those deductions. Investment revenue, on the other hand, pertains to income earned from investments, such as interest or dividends, which is not related to normal business operations. Thus, operating revenue is the most accurate term in this context, as it focuses solely on the income generated from the typical business function.

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Investment revenue

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