Revenue is the amount of money that is made from all sales. Income is the amount of money that is made after all bills are paid.
Increase capital through additional investment of the owner, increase in income Decrease capital through withdrawal of the money made by the owner, incur losses
Sure. If you sell them for more than you paid for them then you will incur a capital gain and therefore will incur capital gains taxes.
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
Actually it is the opposite. If you have received compensation for services, but you have not earned that compensation yet, you incur a liability. That liability represents an obligation to perform those services. As the money is earned, the liability to reduced and you earn revenue.
The withdrawal will be taxed at the rate determined by your entire taxable income, including the withdrawal. If the early withdrawal has no exceptions, it will incur an additional penalty tax of 10%.
US Government bonds are very secure; you will incur almost no risk in buying them. The reverse side of the coin is you will incur almost no income by buying them. For a first-time investment, try Nestle. It's a nice safe investment.
As you accrue expenses, they show up as a CREDIT on the balance sheet, and a DEBIT on the income statement. Then as you actually incur the expense and pay out, you would CREDIT your cash account, and DEBIT the accrued liability account on the balance sheet. For example, if you expect to spend $12,000/year on business travelling expenses, you would accrue $1000 monthly as a CREDIT to your accrued liability account (on the balance sheet), then a DEBIT to the expense account (on the income statement). When you actually do incur the expense and pay out, you CREDIT your cash account, and DEBIT the accrued liability account. Thus, the accrued liability account is cleared out and eventually washed out to zero.
No. You would only incur more costs.No. You would only incur more costs.No. You would only incur more costs.No. You would only incur more costs.
Yes. Gross Profit is the earnings left over after the cost of obtaining or making the good has been subtracted from the selling price of the good. Operating expenses such as the heating and lighting in your office are subtracted from the Gross Profit to give you an "Operating Income/Loss" figure. Finally, things such as Interest revenue or Interest expense are added or deducted from Operating Income to give you a Net Income/Loss. For example. I buy 6 widgets at a cost of $1.10 each from my supplier, and resell them for $3.50 each. My bank statement shows interest revenue of $2, and I have a telephone bill for $60. -Income Statement- Sales $21 .00 ($3.50 x 6 widgets sold) Cost of Goods Sold 6.60 ($1.10 x 6 widgets sold) ---------- Gross Profit $14.40 Operating Expenses: Telephone Bill 60.00 ---------- Operating Loss $(45.60) Non-Operating Expenses: Interest Revenue 2.00 ---------- Net Loss $(43.60) ======
you will incur additional cost
Drivers who are convicted of speeding incur a penalty.
It is easy to incur debt if you abuse your credit cards.