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

Advantages and Limitations of Accounting Income

In this article we will discuss about the advantages and limitations of accounting income. Advantages of Accounting Income: (1) Accounting concept of income has the benefit of a sound, factual and objective transaction base. Accounting income has stood the test of time and therefore is used by the universal accounting community. (2) Another argument in favour of historical cost-based income [...]

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