Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Income shopping experience:
1. Compare - without doubt the biggest advantage that the Income offers shoppers today is the ability to compare thousands of Income at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Income? Wrong! If the Income is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Income then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Income? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Income and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Income wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Income then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Income site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Income, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Income, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business.
Internationally, the accounting term
income is synonymous to term
revenue minus expenses. The International Accounting Standards Board uses this definition:
Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. (IFRS Framework)
Meaning in economics and use in economic theory
In
economics, factor income is the
Stock vs. flow (economics) (that is, measured per unit of time) of revenue accruing to a person or nation from labor services and from ownership of Land (economics) and
Capital (economics).
In consumer theory 'income' is another name for the "budget constraint," an amount Y to be spent on different goods x and y in quantities x and y at prices Px and Py. The basic equation for this is
Y = Px • x + Py • y.
This equation implies two things. First buying one more unit of good x implies buying Px/Py less units of good y. So, Px/Py is the
relative price of a unit of x as to the number of units given up in y. Second, if the price of x falls for a fixed Y, then its relative price falls. The usual hypothesis is that the quantity demanded of x would increase at the lower price, the law of demand. The generalization to more than two goods consists of modelling y as a
composite good.
The theoretical generalization to more than one period is a multi-period
wealth (economics) and income constraint. For example the same person can gain more productive skills or acquire more productive income-earning assets to earn a higher income. In the multiperiod case, something might also happen to the economy beyond the control of the individual to reduce (or increase) the flow of income. Changing measured income and its relation to consumption over time might be modeled accordingly, such as in the
permanent income hypothesis.
Distribution of Income
The distribution of income within a society can be measured by the
Lorenz curve and the Gini coefficient.
This may reveal the existence of politically unacceptable inequality of income. There may be strong political pressure to adopt policies of income redistribution by taxing the richer people at a higher rate than the middle class and giving subsidies or income-support to the very poor in a variety of ways. Political economy tends to be highly controversial because people have conflicting opinion regarding income redistribution.
National income, measured by statistics such as the
Net National Income (NNI), measures the total income of individuals, corporations, and government in the economy. For more information see measures of national income and output.
Income in Philosophy and Ethics
Throughout history, many scholars have written about the impact of income growth on morality and society. In particular, a number of scholars have come to the conclusion that material progress and prosperity, as manifested in continuous income growth at both individual and national level, provide the indispensable foundation for sustaining any kind of morality. This argument was explicitly given by
Adam Smith in his
Theory of Moral Sentiments, and has more recently been developed in depth by Harvard economists Benjamin Friedman in his well-acclaimed recent book
The Moral Consequences of Economic Growth.
Meaning within U.S. accountancy
In
United States business and financial accounting, the term 'income' is also synonymous with revenue; however, many people use it as shorthand for
net income, which is the amount of money that a company earns after covering all of its costs.
Net income is also called 'net profit'. It is calculated as follows:
1. The gross income or gross revenue is tabulated.2. Where applicable, the cost of goods sold or cost of operations figure is subtracted from the gross income to yield the gross profit.3. All expenses other the COGS or COO are subsequently subtracted from the gross profit to yield the net profit or net income - or, if a negative number, the net loss (usually written in parentheses). More commonly, this is called "Net Income (or Loss) Before Taxes".4. Taxes are then subtracted from the pre-tax net income to give a final net income or net profit (or net loss) figure.
Net income or net profit which is not expended to shareholders in the form of
dividend becomes part of retained earnings.
All public company are required to provide
financial statements on a quarterly basis, and the income statement of income is one of the most important of these. Some companies also provide a more rosy financial report of their income, with
pro forma reporting, or, EBITDA reporting.
Pro forma income is an estimate of how much the company would have earned without including the negative effect of exceptional "one-time events", supposedly in order to show investors how much money the company would have made under normal circumstances if these exceptional, one-time events had not occurred. Critics charge that, in most cases, the "one-time events" are normal business events, such as an acquisition of another company or a write off of a cancelled project or division, and that
pro forma reporting is an attempt to mislead investors by painting a rosy financial picture. Besides that, when discussing results with analysts and shareholders, CEOs and CFOs have a tendency to do even more "hypothetical accounting".
EBITDA stands for "earnings before interest,
taxes, depreciation, and
amortisation", and is also criticised for being an attempt to mislead investors. Warren Buffett has criticised EBITDA reporting, famously asking, "Does management think the
tooth fairy pays for capital expenditures?"
It is common for some other companies, such as real estate investment trusts, to present reports using a standard called FFO, or "Funds From Operations". Like EBITDA reporting, FFO ignores depreciation and amortization. This is widely accepted in the industry, as
real estate values tend to increase rather than decrease over time, and many data sites report
earnings per share data using FFO.
See also
References
External links
- Markets & Stocks: Investor Research Center - Earnings Warnings
- http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/
- CBSalary — Careerbuilder's Free Salary Calculator
- US Corporate Earnings Calendar
Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business.
Internationally, the accounting term
income is synonymous to term
revenue minus expenses. The
International Accounting Standards Board uses this definition:
Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. (IFRS Framework)
Meaning in economics and use in economic theory
In economics, factor income is the Stock vs. flow (economics) (that is, measured per unit of time) of revenue accruing to a person or nation from labor services and from ownership of
Land (economics) and Capital (economics).
In
consumer theory 'income' is another name for the "budget constraint," an amount Y to be spent on different goods x and y in quantities x and y at prices Px and Py. The basic equation for this is
Y = Px • x + Py • y.
This equation implies two things. First buying one more unit of good x implies buying Px/Py less units of good y. So, Px/Py is the
relative price of a unit of x as to the number of units given up in y. Second, if the price of x falls for a fixed Y, then its relative price falls. The usual hypothesis is that the quantity demanded of x would increase at the lower price, the
law of demand. The generalization to more than two goods consists of modelling y as a
composite good.
The theoretical generalization to more than one period is a multi-period
wealth (economics) and income constraint. For example the same person can gain more productive skills or acquire more productive income-earning assets to earn a higher income. In the multiperiod case, something might also happen to the economy beyond the control of the individual to reduce (or increase) the flow of income. Changing measured income and its relation to consumption over time might be modeled accordingly, such as in the
permanent income hypothesis.
Distribution of Income
The distribution of income within a society can be measured by the Lorenz curve and the
Gini coefficient.
This may reveal the existence of politically unacceptable inequality of income. There may be strong political pressure to adopt policies of income redistribution by taxing the richer people at a higher rate than the middle class and giving subsidies or income-support to the very poor in a variety of ways. Political economy tends to be highly controversial because people have conflicting opinion regarding income redistribution.
National income, measured by statistics such as the
Net National Income (NNI), measures the total income of individuals, corporations, and government in the economy. For more information see
measures of national income and output.
Income in Philosophy and Ethics
Throughout history, many scholars have written about the impact of income growth on morality and society. In particular, a number of scholars have come to the conclusion that material progress and prosperity, as manifested in continuous income growth at both individual and national level, provide the indispensable foundation for sustaining any kind of morality. This argument was explicitly given by
Adam Smith in his
Theory of Moral Sentiments, and has more recently been developed in depth by Harvard economists
Benjamin Friedman in his well-acclaimed recent book
The Moral Consequences of Economic Growth.
Meaning within U.S. accountancy
In United States business and financial
accounting, the term 'income' is also synonymous with
revenue; however, many people use it as shorthand for
net income, which is the amount of money that a company earns after covering all of its costs.
Net income is also called 'net profit'. It is calculated as follows:
1. The gross income or gross revenue is tabulated.2. Where applicable, the cost of goods sold or cost of operations figure is subtracted from the gross income to yield the gross profit.3. All expenses other the COGS or COO are subsequently subtracted from the gross profit to yield the net profit or net income - or, if a negative number, the net loss (usually written in parentheses). More commonly, this is called "Net Income (or Loss) Before Taxes".4. Taxes are then subtracted from the pre-tax net income to give a final net income or net profit (or net loss) figure.
Net income or net profit which is not expended to shareholders in the form of
dividend becomes part of
retained earnings.
All public company are required to provide
financial statements on a quarterly basis, and the income statement of income is one of the most important of these. Some companies also provide a more rosy financial report of their income, with
pro forma reporting, or,
EBITDA reporting.
Pro forma income is an estimate of how much the company would have earned without including the negative effect of exceptional "one-time events", supposedly in order to show investors how much money the company would have made under normal circumstances if these exceptional, one-time events had not occurred. Critics charge that, in most cases, the "one-time events" are normal business events, such as an acquisition of another company or a write off of a cancelled project or division, and that
pro forma reporting is an attempt to mislead investors by painting a rosy financial picture. Besides that, when discussing results with analysts and shareholders, CEOs and CFOs have a tendency to do even more "hypothetical accounting". EBITDA stands for "earnings before
interest, taxes,
depreciation, and amortisation", and is also criticised for being an attempt to mislead investors.
Warren Buffett has criticised EBITDA reporting, famously asking, "Does management think the tooth fairy pays for
capital expenditures?"
It is common for some other companies, such as
real estate investment trusts, to present reports using a standard called FFO, or "Funds From Operations". Like EBITDA reporting, FFO ignores depreciation and amortization. This is widely accepted in the industry, as real estate values tend to increase rather than decrease over time, and many data sites report
earnings per share data using FFO.
See also
References
- D. Usher (1987). "real income," The New Palgrave: A Dictionary of Economics, v. 4, pp. 104-05
External links
- Markets & Stocks: Investor Research Center - Earnings Warnings
- http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/
- CBSalary — Careerbuilder's Free Salary Calculator
- US Corporate Earnings Calendar
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