What are different between Revenue and Revenue recognition?

Question

Accepted Answer

Revenue is the total income earned by a company, while revenue recognition is the process of recording revenue in the financial statements.

Revenue is the total amount of money a company earns from its operations, while revenue recognition is the process of recognizing that revenue in the financial statements.
Revenue is recognized when it is earned, while revenue recognition is the process of determining when revenue is earned and should be recognized.
Revenue can be recognized in different ways, such as when a product is sold or when a service is performed, while revenue recognition involves following accounting standards and principles to ensure accurate reporting.
For example, a company may earn $10,000 in revenue in a month, but only $8,000 of that revenue may be recognized in that same month due to accounting principles.
Revenue is important for measuring a company's financial performance, while revenue recognition is important for ensuring accurate financial reporting.