Disposable incomeis the amount of net income a household or individual has available to invest, save, or spend afterincome taxes. When you receive a paycheck, disposable income is the net amount you receive in your check. Disposable income minus all necessary payments equals discretionary...
Operating income is often used interchangeably with earnings before interest and taxes (EBIT). However, there is a slight difference between the two: Operating income equals revenue minus operating expenses, while EBIT also subtracts the cost of goods sold (COGS). Here are the basic formulas: 营...
Thus, revenues are the opposite of expenses, and income equals revenues minus expenses. For example a store may sell $300 worth of merchandise, for which it originally paid $200. In that example the company's revenue is $300, its expense is $200, and its net income or profit is $100...
Google Share on Facebook pretax income Legal Acronyms Pretax Income An individual's totalincomebefore he/she pays anyincome taxor other tax, but after he/she takesdeductions. For example, suppose one'ssalaryis $50,000. If the person takes $10,000 in tax deductions, his/her pretax income...
A wealth tax has an advantage over a capital income tax in any economy when returns to capital differ in a systematic fashion by pushing the tax burden toward the less productive capital. Since Guvenen et al. believed that the economics literature has established the existence of highly varying...
Revenue minus expenses equals profit or loss. An income statement might use the cash basis or the accrual basis. The income statement is a useful way to see how a company makes money and how it spends it. You can look at an income statement for just one day or over a month, a quarte...
We infer the possible explanation that the poorer who suffer from more income inequality live in undeveloped areas with good environmental quality and the richer who have relatively less income inequality can freely choose the area with good environmental quality to live in; hence, they both have ...
35% or less is generally viewed as favorable, and your debt is manageable. You likely have money remaining after paying monthly bills. 36% to 49% means your DTI ratio is adequate, but you have room for improvement. Lenders might ask for other eligibility requirements. ...
For businesses, gross income can also be referred to as gross profit when preparing financial statements for companies, and it equals the revenues from the sale of goods or services less thecost of goods sold. The revenue sources may comprise income from selling goods and services, intellectual ...
(less than 10 percent) are deductible, and a similar rule is observed in Germany. On the other hand, in the Netherlands the whole expense becomes deductible once the minimum has been exceeded. The justification for a deduction of this type is that medical expenses are not generally ...