What is Income?
Income is the consumption and savings opportunity gained by an entity within aspecified time frame, which is generally expressed in monetary terms.
However,for households and individuals, "income is the sum of all the wages, salaries,profits, interests payments, rents and other forms of earnings received... in a givenperiod of time."
For firms, income generally refers to net-profit: what remains of revenue after expenses have been subtracted. In the field of public economics, itmay refer to the accumulation of both monetary and non-monetary consumptionability, the former being used as a proxy for total income.
Accounting Concept of Income:
Accounting income is defined as an estimate of performance in the operations of acompany. It is influenced by financing and investing decisions. Accounting incomeor loss generally recognizes realized gains and losses, and does not recognizeunrealized gains and losses.For income to be realized it must be related to actual business transactions; ineffect, the cash you have must increase or decrease. A change in market valuerather than cash received is not an accounting income; it is an economic income.Economic income or loss recognizes all gains and losses whether realized orunrealized.Central to the accounting profits definition is whether a gain or loss is realized orunrealized. When a gain or loss is realized it becomes an income suitable foraccounting. The accounting value for this asset is generally listed at the historical