What is the income
The definition of income implies a wide range of applications. In a General sense, income is those funds or tangible assets that were obtained as a result of activities for a certain time period.
Economic benefit should be considered the amount of money received in the form of wages, interest, dividends, payments for the use of factory buildings, equipment, land, other natural resources, revenue and taxes from business activities. From the point of view of economists, the income is means, after payment of taxes which the subject of activity expects to spend for personal consumption and for personal savings. Also under income understand the funds that the subject can spend and it will not affect its economic condition. Receive the income of natural and legal persons and the state.
Macroeconomic and microeconomic indicators
In the analysis of macroeconomic indicators, the concept of total income or national income is considered. National income is the total income received by suppliers of resources for their contribution to gross national product. Total income is the earnings of workers and employees, income from the use of natural resources, buildings, premises, net interest on loans to individuals, corporate profits, net income of owners.
The microeconomic approach considers the activities of individual enterprises. Income should also be analyzed in terms of the ability of buyers to purchase goods and services for a monetary unit.
What is the estimate of income and expenses
Even in the pre-revolutionary period, revenues received by the budget were defined as direct and indirect, income from enterprises that are under the jurisdiction of the state, income that brings monopolies. In the modern world, the budget of the country is filled with revenues of budget funds, tax and non-tax revenues from foreign economic activity and property in state ownership. That is, state revenues include operations from exchange in the foreign market, foreign loans, assistance from friendly States, which is directed to the execution of the functions of the state, state payments, money fees and taxes. The leading role in filling the state budget belongs to tax revenues.
Income classification
In Economics, the term income has different classifications. For example, it is divided into labor and non-labor type of income. Labor or earned income is a reward for labor. Non-labour income refers to the profit that is derived from the use of natural resources and capital as rent, dividends and interest. In Western countries, this classification is used to determine the tax rate.
Income is also divided into nominal and real types. Nominal income is defined as cash income that comes in regardless of price changes and taxation. In determining the real income take into account changes in prices and taxes.
The gross turnover of the enterprise is derived from its main activities. The turnover of the enterprise includes income from the sale of goods and services, movable and immovable property, royalties, interest on loans provided by the enterprise, and other cash receipts.
Income received in the informal economy is divided into two types: non-market income and illegal income.
By economic profit economists mean the difference between costs and turnover of the enterprise. The amount of net income remains at the disposal of the company. From this we conclude that the net income is the profit of the enterprise.
