ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Gross income is the total revenue derived from sales of goods and services in a specified period. Net income is the profit left after deducting total business expenses from gross income. Learn which business expenses you should track.

Detailed explanation-2: -Accrued revenue represents revenue that you have earned and for which you are yet to receive payment. Unearned revenue, also referred to as deferred revenue, refers to payments you have received for services you are yet to render.

Detailed explanation-3: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services.

Detailed explanation-4: -Income statements covering longer periods such as a year provide information about how business expenses and revenue balance out over time. For this reason, banks usually ask for longer-term statements, often requiring a series of annual documents showing business activity over multiple years.

Detailed explanation-5: -Key Takeaways. Accrued income is revenue that’s been earned, but has yet to be received. Both individuals and companies can receive accrued income. Although it is not yet in hand, accrued income is recorded on the books when it is earned, in accordance with the accrual accounting method.