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 […]

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 […]

5 Important Recipients of Net Income

The following points highlight the five important recipients of net income. The recipients are: 1. Value-Added Concept of Income 2. Enterprise Net Income 3. Net Income to Investors 4. Net Income to Shareholders 5. Net Income to Residual Equity Holders. Recipient # 1. Value-Added Concept of Income: Broadly speaking, it is possible to view the […]

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