In a general sense, income means all types of receipts in the form of cash or material assets in favor of individuals and legal entities as a result of their business activities.
The income of legal entities is connected with the capital of the enterprise. This is all cash receipts that are related to the sale of goods (performance of work or the provision of services), as well as other sales and non-productive activities. The resulting income leads to an increase in assets and an increase in equity. Incomes of individuals imply the receipt of certain material benefits in the course of their business activities.
Types of income is a multicomponent concept. You need to understand that for the competent management of financial resources, it is necessary to distinguish between such separate categories as income, cash accumulation and profit.
Types of income as financial and economic categories can be defined as follows.
Income is the flow of money that comes at the disposal of an enterprise or individual as a result of the distribution of national income.
Gross income in international practice is the excess of revenue from all types of sales over the cost of funds as part of the cost of sales. This is the main source of accumulation of financial resources. In Russian practice, gross income is understood as all monetary funds received from all types of activities at the disposal of the enterprise.
According to accounting documents, types of income are classified into three main groups: from ordinary activities, as well as the so-called non-operating and operating.
All types of organization income are related to gross income. Sales revenue is often referred to as gross income from sales of manufactured products. In this case, the total amount of all revenues from activities is considered the gross income of the enterprise. Gross income is expressed in cash accumulations of the enterprise.
Cash accumulations are formed not only in the form of revenues from operating results, but also as depreciation, reserve and other funds. Special funds are available to organizations along with net profit. The main part of cash accumulation is profit.
Revenue from sales is often referred to as gross income from sales, and the total amount of all proceeds from activities is called gross income of the enterprise. It is the result of financial activities reflected in the balance sheet of the enterprise. Gross income is based on the cash accumulations of an economic entity. Types of income are directly related to types of profit.
Profit depending on the characteristics and stages of its receipt is gross (balance sheet), profit from the sale of products (services), from investment activities, financial activities, the sale of fixed assets of the enterprise and other property, as well as non-operating income.
Types of income are divided into total, average and marginal.
Aggregate (gross) is the product of the price by the number of products sold. Medium - income per unit of product sold. Marginal - characterizes the growth of the aggregate with the growth of production per unit of goods.
According to the signs of manageability, the profit is divided into taxable remaining at the disposal of the enterprise, used, withdrawn, undistributed.
Types of income of individuals are more simple. The main one is the personal income tax (accepted reduction of personal income tax). It is calculated as a percentage of the total net of documented expenses.
Also, the incomes of individuals are considered to be winnings and prizes received during advertising events; interest income on bank deposits in excess of the amount calculated by the Central Bank; the amount of interest savings upon receipt of credit funds in case of exceeding the amount established by the Tax Code; funds from participation in the activities of organizations in the form of dividends and some other categories established by law.