net revenue

A line item at the top of a firm’s income statement. Revenue is recognized and recorded on the income statement when the product has been delivered or the service has been rendered and the seller is reasonably sure that the product will not be returned, in accordance with the accrual accounting method. Both the risk and the reward of ownership must be transferred from the buyer to the seller for the transaction to be considered final. Net revenue as reported on the income statement is typically net of the allowance for doubtful accounts.