Archive | Income Concepts

Procedure of Computing Accounting Income: 4 Steps

The following points highlight the four main steps involved in procedure of computing accounting income. The steps are: 1. Defining the Particular Accounting Period 2. Identifying Revenues of the Accounting Period Selected 3. Identifying Costs Corresponding to Revenues Earned 4. Matching Principle. Step # 1. Defining the Particular Accounting Period: Accounting income refers to the financial performance of the firm [...]

By |2016-06-18T07:01:56+00:00June 18, 2016|Income Concepts|Comments Off on Procedure of Computing Accounting Income: 4 Steps

Comprehensive Income: Concept, Components and Advantages

In this article we will discuss about Comprehensive Income:- 1. Concept of Comprehensive Income 2. Components of Comprehensive Income 3. Advantages. Concept of Comprehensive Income: Comprehensive income, also known as all-inclusive concept of income, is the change in equity (net assets) of an entity during a period from transactions and other events and circumstances from non-owner sources. It includes all [...]

By |2016-06-18T07:01:56+00:00June 18, 2016|Income Concepts|Comments Off on Comprehensive Income: Concept, Components and Advantages

Top 3 Concepts of Income (With Measurement)

The following points highlight the top three concepts of income. The concepts are: 1. Accounting Income 2. Economic Income 3. Capital Maintenance Income. Concept # 1. Accounting Income: Accounting income, often referred to as business income or conventional income is measured in accordance with generally accepted accounting principles. The profit and loss account or income statement determines the net income [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Income Concepts|Comments Off on Top 3 Concepts of Income (With Measurement)
Go to Top