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Income What is Income?
Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. How does it work? In business and accounting, income (also known as profit or earnings) is, more specifically, the amount of money that a company earns after paying for all its costs. To calculate a company's income, it starts with its amount of revenue, deducts all costs, including such things as employees' salaries and depreciation, and the number that results is its income, which may be a negative number. At least part of this money is typically reinvested in the business, and some of the money might be used to pay the owners (the shareholders) a dividend.Related Keywords Individual income, business income, revenue, income tax. Recommended Websites |
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