What is the definition of revenue in financial reporting?

Revenue in financial reporting refers to the income generated from normal business operations, which encompasses the sales of goods or services that the company provides during a given period. This is a critical aspect of financial statements because it highlights the effectiveness of a company's core business activities in generating cash flow and profits.

Understanding revenue is essential since it lays the foundation for assessing a company's financial health and operational efficiency. While total income before expenses might imply a broader view, it does not specifically focus on the income earned through the company's primary activities. Similarly, net earnings after taxes deals with profit, which comes after accounting for all expenses, including taxes, and doesn't represent revenue itself. Finally, total liabilities pertain to what the company owes and are not a measure of income at all. Thus, the definition of revenue is directly aligned with option C, emphasizing income directly earned from the business's usual operations.