Search results
Results from the WOW.Com Content Network
In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period.
In U.S. business and financial accounting, income is generally defined by Generally Accepted Accounting Principles (GAAP) and the Financial Accounting Standards Board as: Revenues – Expenses; however, many people use it as shorthand for net income, which is the amount of money that a company earns after covering all of its costs as well as taxes.
Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. [1] Income is difficult to define conceptually and the definition may be different across fields.
Ordinary income is usually characterized as income other than long-term capital gains. Ordinary income can consist of income from wages , salaries , tips , commissions , bonuses, and other types of compensation from employment, interest , dividends , or net income from a sole proprietorship , partnership or LLC .
For a business, gross income (also gross profit, sales profit, or credit sales) is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.
income derived from labor, also known as active income, which is income derived from labor provided by an individual in return for remuneration, or income derived from the conduct of a business. [28] Common types of income from active working include: wages, salaries, tips, bonuses and commissions; income from an active activity in a trade or ...
Ramsey explained that his definition was simple: negative net worth. “The bottom line is your income doesn’t determine wealth,” he said. “Because if you make $200,000 a year and you owe ...
Gross income is sales price of goods or property, minus cost of the property sold, plus other income. It includes wages, interest, dividends, business income, rental income, and all other types of income. Adjusted gross income is gross income less deductions from a business or rental activity and 21 other specific items.