Income Definition

You are seeing definition of Income in Accounting Terms Dictionary

Maybe this is not completely definition of Income but this is the best definition of Income at this time that we found. In future, this definition of Income can be modified, please visit our Accounting Terms Dictionary more frequently to get latest information.

Home » Accounting Terms Dictionary » General Accounting Terms Dictionary » Income

Definition Of Income:

1. General: Flow of cash or cash-equivalents received from work (wage or salary), capital (interest or profit), or land (rent).
2. Accounting: (1) Excess of revenue over expenses for an accounting period. Also called earnings or gross profit. (2) Amount by which total assets increase in an accounting period. 3. Economics: Consumption which, at the end of a period, will leave an individual with the same amount of goods (and the expectations of future goods) as at the beginning of that period. Therefore, income means the maximum amount an individual can spend during a period without being any worse off. Income (and not the GDP) is the engine that drives an economy because only it can create demand. 4. Law: Money or other forms of payment (received periodically or regularly) from commerce, employment, endowment, investment, royalties, etc.Other definition of Income- Economic wealth thatis generatedin exchange for an individual'sperformance ofagreed upon activities or through investingcapital. Income is consumed to fuelday-to-day expenditures.Inbusinesses,income can refer to a company's remaining revenues after all expenses and taxes have been paid. In this case, it is also known as "earnings".For the average individual, income is earned through earning wagesby working and/or making investments into financial assets. In most countries, the amount of income that an individual receives is taxed by the government before it is received. The revenue generated by income taxesis used to financegovernment actions and programsas determined bythe federal budget.

Other Definition Of Accounting Terms:

For your more easier in looking up our business terms dictionary, we classified definitions of business terms in several types. Please select one type below:
Salary Accounting | Stock Accounting | Bank Accounting | General Accounting | Accrual Accounting | Inventory Accounting | All Types

Thank you for visiting Accounting Dictionary website. We are conituning to upadate more Accounting terms to Accounting Dictionary. Please visit this website usually to get new Accounting definitions. We also provide some more dictionaries, you can find out as below:
Medical Dictionary | Law Dictionary | Legal Dictionary | Business Dictionary | Financial Dictionary | Computer Dictionary | Slang Dictionary