Which term best defines the cash flow coming into a business?

The term "revenue" is defined as the total amount of money received by a business from its normal business activities, primarily from the sale of goods and services to customers. Revenue represents the incoming cash flow that a business generates, which is essential for covering expenses, investing in operations, and ultimately, generating profit.

This concept is critical in understanding the financial health of a business, as strong revenue streams are indicative of effective sales strategies, customer satisfaction, and market demand. Revenue is often viewed as one of the primary indicators of a company's performance. In contrast, the other terms such as expenses, expenditures, and investments refer to cash going out of the business or financial activities that do not directly reflect incoming cash flow.

Expenses are the costs of running a business, expenditures refer to the spending or outflow of funds, and investments pertain to assets purchased with the expectation of generating future income. Recognizing revenue as cash flow coming into a business helps to establish a clear distinction between inflow and outflow of funds, which is fundamental in business finance.