Specifically, there are: income from selling goods, income from providing labor services, income from transferring property, dividends, bonuses and other equity investment income, interest income, rental income, royalties income, income from accepting donations and other income.
The cash, deposits, accounts receivable, notes receivable, held-to-maturity bond investment and debt forgiveness are the monetary forms for enterprises to obtain income.
Taxpayers' income in non-monetary form includes fixed assets, biological assets, intangible assets, equity investment, inventory, held-to-maturity bond investment, labor services and related rights and interests. These non-monetary assets should be determined according to fair value, which refers to the value determined according to market price.
Here, I quote the international accounting standard "preparation and presentation structure of financial statements":
I. The elements of income and expenses are defined as follows:
1. Income refers to the increase of economic benefits during the accounting period, which is manifested in the inflow or appreciation of assets or the decrease of liabilities. This will lead to the increase of equity, but it does not include those matters related to the capital contribution of equity owners.
2. Expenses refer to the reduction of economic benefits during the accounting period, which is manifested in the outflow or loss of assets or the generation of liabilities, resulting in the reduction of equity, but does not include those matters related to the distribution of equity owners.
The definition of income includes income and profit.
Revenue: generated in the normal activities of enterprises, with various names, including sales revenue, service fee, interest, dividend, use fee, rent, etc.
Profit: refers to other items that meet the definition of income but may or may not be generated in the normal activities of the enterprise. Profit represents the increase of economic benefits, which is no different from the nature of income in this respect. Therefore, it is not listed as a separate element in this structure.
For example, income includes income from the sale of illiquid assets. The definition of income also includes unrealized gains, for example, gains from the revaluation of securities and gains from the increase in the book value of long-term assets. When profits are recognized in the income statement, they are usually listed separately, because understanding the situation of profits is helpful to economic decision-making. Profits are usually reported after deducting related expenses.
All kinds of assets can be obtained or increased through income, for example, cash, accounts receivable, goods and services can be obtained through exchanging goods and providing services. Income may also come from paying off debts. For example, enterprises can provide goods and services to lenders to pay off the final debts owed by loans.
Profit (net profit, net profit) is often used as an indicator to measure business performance, or as a basis to measure other indicators such as return on investment or earnings per share. The factors directly related to profit measurement are income and expenses.
Profit (net profit, net profit) = income-expenses (including income tax)
To sum up, income can be understood as income (profit), and profit is understood as the net amount of income after deducting expenses (including income tax).
For listed companies, earnings per share = net profit/number of common shares. The income mentioned here is the income that can be expected from dividend distribution from the perspective of shareholders (investors).
Enterprise profit = total enterprise income-total enterprise expenses
The fundamental purpose of an enterprise is to make profits, that is, to make money, which can be reflected in the maximization of shareholders' rights and interests. The direct means to maximize shareholders' rights and interests is to pursue the maximization of company profits.