Revenues refer to the total income generated by a business from its normal operations, primarily through the sale of goods and services. For example, when a coffee shop sells a cup of coffee, the money received from that sale contributes to its overall revenues. This income is crucial for covering expenses, paying employees, and investing in growth. Understanding revenues is essential for evaluating a company's financial health. Higher revenues often indicate a successful business strategy and customer demand. For instance, a tech company that launches a popular new gadget may see a significant increase in revenues, reflecting its market appeal and effective marketing efforts.