Income, refers to consumption opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms.^[1] Usage of the term may, however, be somewhat ambiguous. For households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received... in a given period of time."^[2] For firms, income generally refers to net-profit: what remains of revenue after expenses have been subtracted.^[3] In the field of public economics, it may refer to the accumulation of both monetary and non-montary consumption ability, the former being used as a proxy for total income.^[1] Public economics is the study of the public sector and its influence on the economy and society. ...

The International Accounting Standards Board uses this definition: <a href=>bad credit mortgages</a> <a href=>chase credit cards</a> <a href=>seo optimization</a> ...

Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. [F.70] (IFRS Framework)

Meaning in economics and use in economic theory

In economics, factor income is the flow (that is, measured per unit of time) of revenue accruing to a person or nation from labor services and from ownership of land and capital. Face-to-face trading interactions on the New York Stock Exchange trading floor. ... A stock in business and social accounting refers to the value of an asset at a balance date (or point in time), while a flow refers to the total value of transactions (sales or purchases) during an accounting period. ... Land in economics comprises all naturally occurring resources whose supply is inherently fixed (i. ... Capital has a number of related meanings in economics, finance and accounting. ...

In consumer theory 'income' is another name for the "budget constraint," an amount Y to be spent on different goods x and y in quantities x and y at prices Px and Py. The basic equation for this is Consumer theory is a theory of economics. ...

Y = Px • x + Py • y.

This equation implies two things. First buying one more unit of good x implies buying Px/Py less units of good y. So, Px/Py is the relative price of a unit of x as to the number of units given up in y. Second, if the price of x falls for a fixed Y, then its relative price falls. The usual hypothesis is that the quantity demanded of x would increase at the lower price, the law of demand. The generalization to more than two goods consists of modelling y as a composite good. The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... // Definition A composite good is an abstraction used in economics that represents all other choices of consumption that can be made. ...

The theoretical generalization to more than one period is a multi-period wealth and income constraint. For example the same person can gain more productive skills or acquire more productive income-earning assets to earn a higher income. In the multiperiod case, something might also happen to the economy beyond the control of the individual to reduce (or increase) the flow of income. Changing measured income and its relation to consumption over time might be modeled accordingly, such as in the permanent income hypothesis. In economics wealth of a person or nation is the value of assets owned minus the value of liabilities owed (to foreigners in the case of a nation) at a point in time. ... To meet Wikipedias quality standards, this article or section may require cleanup. ...

Income inequality

Income inequality refers to the extent to which income is distributed in an uneven manner. Within a society can be measured by various methods, including the Lorenz curve and the Gini coefficient. Economists generally agree that certain amounts of inequality are necessary and desirable but that excessive inequality leads to efficiency problems and social injustice.^[1] Income inequality metrics or income distribution metrics are techniques used by economists to measure the distribution of income among members of a society. ... The Lorenz curve is a graphical representation of the cumulative distribution function of a probability distribution; it is a graph showing the proportion of the distribution assumed by the bottom y% of the values. ... Graphical representation of the Gini coefficient The Gini coefficient is a measure of inequality of income distribution or inequality of wealth distribution. ...

National income, measured by statistics such as the Net National Income (NNI), measures the total income of individuals, corporations, and government in the economy. For more information see measures of national income and output. Net National Income (NNI) is an economics term used in National income accounting. ... Template:Push up GNP redirects here. ...

Income in Philosophy and Ethics

This section does not cite any references or sources. (March 2008) Please help improve this section by adding citations to reliable sources. Unverifiable material may be challenged and removed.

Throughout history, many scholars have written about the impact of income growth on morality and society. In particular, a number of scholars have come to the conclusion that material progress and prosperity, as manifested in continuous income growth at both individual and national level, provide the indispensable foundation for sustaining any kind of morality. This argument was explicitly given by Adam Smith in his Theory of Moral Sentiments, and has more recently been developed in depth by Harvard economist Benjamin Friedman in his well-acclaimed recent book The Moral Consequences of Economic Growth. For other persons named Adam Smith, see Adam Smith (disambiguation). ... Benjamin M. Friedman, a leading American political economist, is William Joseph Maier Professor of Political Economy at Harvard University. ...

Meaning within U.S. accountancy

This section does not cite any references or sources. (March 2008) Please help improve this section by adding citations to reliable sources. Unverifiable material may be challenged and removed.

In U.S. business and financial accounting, the term 'income' is also synonymous with revenue; 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. For other uses of terms redirecting here, see US (disambiguation), USA (disambiguation), and United States (disambiguation) Motto In God We Trust(since 1956) (From Many, One; Latin, traditional) Anthem The Star-Spangled Banner Capital Washington, D.C. Largest city New York City National language English (de facto)1 Demonym American... It has been suggested that Accounting scholarship be merged into this article or section. ... For the tax agency in Ireland of the same name, see Revenue Commissioners. ...

Net income is also called 'net profit'. It is calculated as follows:

1. The gross income or gross revenue is tabulated.
2. Where applicable, the cost of goods sold or cost of operations figure is subtracted from the gross income to yield the gross profit.
3. All expenses other the COGS or COO are subsequently subtracted from the gross profit to yield the net profit or net income - or, if a negative number, the net loss (usually written in parentheses). More commonly, this is called "Net Income (or Loss) Before Taxes".
4. Taxes are then subtracted from the pre-tax net income to give a final net income or net profit (or net loss) figure.

Net income or net profit which is not expended to shareholders in the form of dividends becomes part of retained earnings. This article is about financial dividends. ... In accounting, retained earnings refers to the portion of net income from a period which is retained by the corporation, rather than distributed to its owners. ...

All public companies are required to provide financial statements on a quarterly basis, and the income statement of income is one of the most important of these. Some companies also provide a more rosy financial report of their income, with pro forma reporting, or, EBITDA reporting. Pro forma income is an estimate of how much the company would have earned without including the negative effect of exceptional "one-time events", supposedly in order to show investors how much money the company would have made under normal circumstances if these exceptional, one-time events had not occurred. Critics charge that, in most cases, the "one-time events" are normal business events, such as an acquisition of another company or a write off of a cancelled project or division, and that pro forma reporting is an attempt to mislead investors by painting a rosy financial picture. Besides that, when discussing results with analysts and shareholders, CEOs and CFOs have a tendency to do even more "hypothetical accounting". EBITDA stands for "earnings before interest, taxes, depreciation, and amortisation", and is also criticised for being an attempt to mislead investors. Warren Buffett has criticised EBITDA reporting, famously asking, "Does management think the tooth fairy pays for capital expenditures?" This article does not cite any references or sources. ... Historical financial statement Financial statements (or financial reports) are formal records of a business financial activities. ... Many companies report pro forma earnings, in addition to normal earnings calculated under the Generally Accepted Accounting Principles (GAAP), in their quarterly and yearly financial reports. ... In accounting and finance, EBITDA «ee-bit-dah» or «ee-bit-dee-eh» stands for Earnings before Interest, Taxes, Depreciation, and Amortization (sometimes named OIBDA for operating income before depreciation and amortization). ... A written-off BMW. The cost of repairing this accident damaged car exceeds the market value of the car; it is less costly for the insurers to pay out the market value than to pay for repairs. ... In accounting and finance, EBITDA «ee-bit-dah» or «ee-bit-dee-eh» stands for Earnings before Interest, Taxes, Depreciation, and Amortization (sometimes named OIBDA for operating income before depreciation and amortization). ... For other senses of this word, see interest (disambiguation). ... -1... Declining-balance depreciation of a $50,000 asset with $6,500 salvage value over 20 years. ... Amortization is distribution of a single lump-sum cash flow into many smaller cash flow installments for easier repayment. ... Warren Edward Buffett (born August 30, 1930, in Omaha, Nebraska) is an American investor, businessman and philanthropist. ... Look up Tooth fairy in Wiktionary, the free dictionary. ... Capital expenditures (CAPEX) are expenditures used by a company to acquire or upgrade physical assets such as equipment, property, industrial buildings. ...

It is common for some other companies, such as real estate investment trusts, to present reports using a standard called FFO, or "Funds From Operations". Like EBITDA reporting, FFO ignores depreciation and amortization. This is widely accepted in the industry, as real estate values tend to increase rather than decrease over time, and many data sites report earnings per share data using FFO. // A Real Estate Investment Trust or REIT (rēt, rhymes with treat) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. ... Parent article: Internet slang Note that this page is strictly a list of Internet slang, not emoticons. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... Earnings per share (EPS) are the earnings returned on the initial investment amount. ...

Meaning for U.S. Income Tax Purposes

This section does not cite any references or sources. (December 2007) Please help improve this section by adding citations to reliable sources. Unverifiable material may be challenged and removed.

For the average citizen in many countries, the term “income” is most relevant for its role in determining how much income tax a person must pay. In the United States, the Internal Revenue Service (IRS) is the executive agency in charge of collecting income taxes. The IRS implements and enforces the Internal Revenue Code (IRC), a set of laws passed by Congress. Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... Seal of the Internal Revenue Service Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        IRS redirects here. ... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes...

For the purpose of taxing income under the IRC, the IRS relies on the definition of income provided in a 1955 U.S. Supreme Court case called Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (1955). According to this case, taxpayers have “income” when they experience "instances of undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion." This means that a taxpayer has income for income tax purposes when he receives something of value (including money, property, securities, or anything else), the transfer is complete, and the taxpayer can control the thing of value. Holding --- Court membership Case opinions Laws applied --- Commissioner v. ...

This definition is helpful for a taxpayer trying to decide what constitutes income. However, there is another way of looking at income for income tax purposes. “Income” is a concept Congress has seized upon for allocating how much tax each member of society will pay. The system seeks to tax individuals in a way that is fair, or at least in a way that appears to be fair. By claiming to assign tax burdens according to how much “income” a person has, the system purports to tax all taxpayers evenly.

Full and Haig-Simmons income

Main article: Haig-Simons income

Full income refers to the accumulation of both, monetary and non-monetary consumption ability of any given entity, such a person or household. According to the what economist Nicholas Barr describes as the "classical definition of income:" the 1938 Haig-Simmons definition, "income may be defined as the... sum of (1) the market value of rights excerised in consumption and (2) the change in the value of the store of property rights..." Since the consumption potential of non-monetary goods, such as leisure, cannot be measured, monteray income may be thought of as a proxy for full income.^[1] As such, however, it is criticized for being unreliable, i.e. failing to accurately reflect affluence and that is consumption opportunities of any given agent. It omits the utility a person may derive from non-montary income and, on a macroeconomic level, fails to accurately chart social welfare. According Barr, "in practice money income as a proportion of total income varies widely and unsystematically. Non-observability of full-income prevent a complete characterization of the individual opportunity set, forcing us to use the unreliable yardstick of money income." On the macro-economic level, national per-capita income, increases with the consumption of activities that produce harm and omits many variables of societal health.^[1]

See also

Look up income in Wiktionary, the free dictionary.

• Comprehensive income
• Distribution (economics)
• Income statement
• Income tax
• Income trust
• Income inequality metrics
• Per capita
• Per capita income
• Poverty line
• Private income
• Profit
• Remuneration
• Six figure income
• Wealth (economics)
• Residual income
• Passive income

Wikipedia does not have an article with this exact name. ... Wiktionary (a portmanteau of wiki and dictionary) is a multilingual, Web-based project to create a free content dictionary, available in over 151 languages. ... Comprehensive income is defined by the Financial Accounting Standards Board, or FASB,[1] as “the change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. ... Distribution in economics is the way total output and income from it is distributed among individuals and among factors of production (such as between labor and capital) (Samuelson and Nordhaus, 2001, p. ... An Income Statement, also called a Profit and Loss Statement (P&L), is a financial statement for companies that indicates how Revenue (money received from the sale of products and services before expenses are taken out, also known as the top line) is transformed into net income (the result after... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... An income trust is an investment trust that holds income-producing assets. ... Income inequality metrics or income distribution metrics are techniques used by economists to measure the distribution of income among the participants in a particular economy, such as that of a specific country or of the world in general. ... Look up Per capita in Wiktionary, the free dictionary. ... Per capita income means how much each individual receives, in monetary terms, of the yearly income generated in their country. ... Map of countries showing percentage of population who have an income below the national poverty line The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ... Private income is either: any type of income received by a private individual or household, often derived from occupational activities, or income of an individual that is not in the form of a salary (e. ... This article or section does not cite any references or sources. ... Remuneration is pay or salary, typically monetary compensation for services rendered, as in a employment. ... Luxury vehicles are some of the most common status symbols in western society and are often associated with six figure income households or persons. ... In economics wealth of a person or nation is the value of assets owned minus the value of liabilities owed (to foreigners in the case of a nation) at a point in time. ... This article does not cite any references or sources. ... There are three types of income - earned, portfolio and passive income. ...

References

• D. Usher (1987). "real income," The New Palgrave: A Dictionary of Economics, v. 4, pp. 104-05

For the news website, see msnbc. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance with the Gregorian calendar. ... is the 73rd day of the year (74th in leap years) in the Gregorian calendar. ...

External links

• Markets & Stocks: Investor Research Center - Earnings Warnings