GROSS INCOME Meaning and
Definition
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Gross income refers to the total income earned by an individual, business, or any other entity before any deductions, taxes, or expenses are subtracted. It is the complete amount of money received or earned from various sources, such as wages, salaries, tips, rental income, interest, dividends, and profits from business operations. Gross income is essential for determining an entity's financial standing or an individual's eligibility for certain benefits or tax brackets.
In the context of individuals, gross income typically includes all sources of income, like wages from employment, self-employment income, commissions, bonuses, alimony received, rental income, and any other taxable earnings. Deductions such as taxes, retirement contributions, health insurance premiums, and other qualified expenses are excluded from gross income to calculate the taxable income.
For businesses, gross income encompasses all revenues generated from sales of products or services, including gross sales or billings, proceeds from investments, royalties, and any other income streams. Gross income helps determine the profitability of a business and is used as a basis for various financial ratios and indicators.
Overall, gross income is a crucial financial metric for individuals and businesses, serving as the starting point for assessing tax liabilities, making budgetary decisions, securing loans or credit, fulfilling reporting obligations, and analyzing financial performance.
Common Misspellings for GROSS INCOME
- fross income
- vross income
- bross income
- hross income
- yross income
- tross income
- geoss income
- gdoss income
- gfoss income
- gtoss income
- g5oss income
- g4oss income
- griss income
- grkss income
- grlss income
- grpss income
- gr0ss income
- gr9ss income
- groas income
- grozs income
Etymology of GROSS INCOME
The term "gross income" has its roots in Old French and Latin.
The word "gross" originated from the Old French word "gros", meaning large or thick. This term eventually evolved and made its way into Middle English as "gross" with the same meaning.
Meanwhile, the word "income" comes from the Latin word "incomptus", which combines "in-" (meaning "not") and "comptus" (meaning "parable" or "recounted"). This originally referred to a lack of money or resources. Over time, the term "income" shifted to its current definition of money received regularly from various sources.
So, the term "gross income" essentially combines the Old French word "gross" (large or thick) and the Latin word "income" (money received) to refer to the total amount of money earned before any deductions or taxes.
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