Understanding Income Statement: Operating Revenue

Operating revenue is the total money a business earns from its main activity—what it’s best known for—before any expenses are taken out.

So imagine you own an apple tree, the money you make from selling the apples that your tree produces is your operating revenue—it’s the main way your tree (or business) brings in money. If you make extra money from something else, like renting a picnic spot under your apple tree or selling old branches, that’s not operating revenue—just like a business earns non-operating revenue from things outside its main work.

So, operating revenue is like the money made from the fruit your tree is supposed to grow and sell—nothing else included