An individual’s gross income consists of wage income plus other forms of income including pensions, interest, dividends and rental income.
Gross income for a business is the total revenue minus cost of goods sold.
Individual gross income is part of the income tax return and after certain deductions and exemptions becomes adjusted gross income and then taxable income.
Individuals may also be required to report gross income when applying for a loan.
Businesses often use gross income instead of net income to better gauge the performance of a business on a particular product.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.