What Is TR in Accounting?

Most businesses prepare income statements periodically to analyze their profit, determine their best sources of income, and identify costs that could be decreased. On an income statement, the acronym "TR" signifies "total revenue." A business's total revenue is the combination of all types of income that the business receives during an accounting period.

Calculating Total Revenue

To calculate your company's total revenue for an accounting period, you must combine the income you received from all sources during the period. This may include sales revenue, interest income from investments, rent and royalty payments, and capital gains from the sale of certain assets. Most businesses list their total revenue for the accounting period on the first line of their income statements.


You must calculate your business's total revenue in order to complete the other entries on your income statement, such as the business's net income. To calculate net income, you must subtract your business's expenses from its total revenue. You can also compare total revenue from one accounting period to the next to determine whether your business's total income is increasing or decreasing.

Alternative Methods

Some businesses don't list their total revenue on their income statements. Instead, they list gross revenue, which is revenue earned only through the sale of goods or services, at the top of the statement. Non-operating revenue, which is all other revenue the business earns, appears at the bottom of the statement. To calculate a business's total revenue when it isn't listed on the income statement, you must add the gross revenue and operating revenue.


Though many businesses compare total revenue from one period to the next, doing so doesn't always give an accurate picture of the business's financial position. Even if total revenue is increasing, net profit may not be increasing if the business is incurring more expenses. For this reason, business owners should analyze all entries on the income statement to determine the success of their business.