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

Limitations of Economic Income

In this article we will discuss about the limitations of economic income. Economic income has several difficulties. In fact there is no agreement as to the meaning of "better offness" that occurs in specific time periods. Also, this term is not well defined in case of business enterprises. The greatest problem lies in measuring the net assets at the beginning [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Income Concepts|Comments Off on Limitations of Economic Income
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