income

Examples of income in the following topics:

• Disposable Income

  • Disposable income is thus total personal income minus personal current taxes .
  • Discretionary income is disposable income minus all payments that are necessary to meet current bills.
  • Discretionary income = Gross income - taxes - all compelled payments (bills)
  • Disposable income is often incorrectly used to denote discretionary income.
  • It is whatever income is left after taxes.

• Personal Income

  • In the United States the most widely cited personal income statistics are the Bureau of Economic Analysis's (BEA) personal income and the Census Bureau's per capita money income.
  • BEA publishes disposable personal income, which measures the income available to households after paying federal and state and local government income taxes.
  • Personal income and disposable personal income are provided both as aggregate and as per capita statistics.
  • BEA produces monthly estimates of personal income for the nation, quarterly estimates of state personal income, and annual estimates of local-area personal income .
  • The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many of these income components that are not included in money income.

• Income Elasticity of Demand

  • The income elasticity of demand measures the responsiveness of the demand for a good or service to a change in income.
  • If an increase in income leads to an increase in demand, the income elasticity of that good or service is positive.
  • In contrast, if a rise in income leads to a decrease in demand, the good or service has a negative income elasticity of demand.
  • Zero income elasticity of demand (YED=0): A change in income has no effect on the quantity bought.
  • Negative income elasticity of demand (YED<0): An increase in income is accompanied by a decrease in the quantity demanded.

• Introduction to the Income Statement

  • The income statement shows revenues and expenses for a specific period.
  • The income statement is prepared on an accrual basis.
  • There are two types of income statement, a single-step income statement and a multi-step income statement.
  • The multi-step income statement is more complex.
  • When combined with income from operations, this yields income before taxes.

• Net Income

  • Net income in accounting is an entity's income minus expenses for an accounting period.
  • Net income in accounting is an entity's income minus expenses for an accounting period.
  • Net income is a distinct accounting concept from profit.
  • Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity.
  • Often, the term "income" is substituted for net income, yet this is not preferred due to the possible ambiguity.

• Income

  • Census Bureau data on household incomes is used to inform welfare policy, as benefits are distributed based on expectations about what income is needed to access basic resources like food and healthcare.
  • Salary alone only measures the income from a person's occupation, while total personal income accounts for investments, inheritance, real estate gains, and other sources of wealth.
  • However, in a dual-income household the combined income of both earners, even if they hold relatively low status jobs, can put the household in the upper middle class income bracket.
  • In the United States, the most widely cited personal income statistics are the Bureau of Economic Analysis's personal income and the Census Bureau's per capita money income.
  • The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many components that are not included in money income.

• Other Comprehensive Income

  • Most changes to equity, such as revenues and expenses, appear in the income statement.
  • The individual components of the balance can be presented in a separate statement of comprehensive income or a separate section for comprehensive income within the income statement.
  • Some IFRSs (international financial reporting standards) require or permit that some components be excluded from the income statement and instead be included in other comprehensive income.
  • Other comprehensive income can be reported in its own statement of comprehensive income or in a separate section within the income statement.
  • Summarize the purpose of the comprehensive income section on the financial statement

• Consumption outcomes

  • Then, disposable income increases to 200 but only consumes 180.
  • These two conclusions imply that the gap between income and consumption at all high levels of income is too wide to be easily filled by investment.
  • Then, disposable income increases to 200 but only consumes 180.
  • Y stands for disposable income.
  • As savings (S) increases as disposable income (Yd) increases.

• Trading off Equity and Efficiency

  • Income taxes are a laddered progressive tax where income tax rates are set in income bands or ranges.
  • Each tax rate corresponds to a particular income range; income above a tax range is subject to a higher tax rate that corresponds to a higher income range and income below a specific range is subject to a lower tax rate, similarly identified with a lower income range.
  • Within any given income range, the tax rate is the same.
  • However, income taxes are only proportional within specific income ranges.
  • At the highest income tax rate, income taxes can become regressive, since high earners are only subject to a constant albeit highest rate on their income.

• Defining the Income Statement

  • The important thing to remember about an income statement is that it represents a period of time.
  • The income statement can be prepared in one of two methods.
  • Adding to income from operations is the difference of other revenues and other expenses.
  • When combined with income from operations, this yields income before taxes.
  • The final step is to deduct taxes, which finally produces the net income for the period measured.