Revenue refers to the total income generated by a business from its normal operations, such as sales of goods or services. It is a crucial indicator of a company's financial health and is often referred to as the "top line" because it appears at the top of the income statement. Expenses are the costs incurred by a business in order to generate revenue. These can include operating costs, salaries, rent, and utilities. Understanding the balance between revenue and expenses is essential for assessing profitability and overall financial performance.