Operating income is that income which is earned through primary business activity while non operating income is that part of income which is not generated through primary operations of business like interest income, dividend income etc.
operating income refers to "net" profits. The amount of money a company has after all overhead and taxes. Revenue is the sales for a company from goods sold or "gross income.
The difference between ordinary income and net income is as important as the differences between tax deductions and operating expenses. Ordinary income refers to income received from salaries, interest income, etc., while net income is a specific accounting term related to financial reporting of a business operations for a specific time period. Think of ordinary income as that which is earned and reported by individual tax payers on their taxes, while net income is reported by a business. Generally speaking net income can be figured as follows: Revenues (Total dollar figure from operations) (-) Cost of goods sold = Gross Profit -- Selling, General and Administrative Costs (SG&A) (Operating expenses) = Earnings Before Interest,Taxes, and Amortization expenses (EBITA) (-) Depreciation and Amortization= Earnings Before Interest and Taxes(-) Interest Expenses (cost of borrowing money)= Earnings Before Tax (EBT)(-) Tax Expense = Net income
Income which is generated by normal business basic operating activities is called net operating income while other income then operating income is called non operating income like interest income or dividend income etc.
Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc. Revenue income is that income which is generated from basic business operating activities.
Net income refers to all income minus expenses and taxes. Ordinary income refers to all income other than capital gain. Therefore, net ordinary income is income, with the exception of capital gain, after expenses and taxes are deducted.
Operating income is that income which is earned through primary business activity while non operating income is that part of income which is not generated through primary operations of business like interest income, dividend income etc.
is compensation received an exceptional income
operating income refers to "net" profits. The amount of money a company has after all overhead and taxes. Revenue is the sales for a company from goods sold or "gross income.
The difference between ordinary income and net income is as important as the differences between tax deductions and operating expenses. Ordinary income refers to income received from salaries, interest income, etc., while net income is a specific accounting term related to financial reporting of a business operations for a specific time period. Think of ordinary income as that which is earned and reported by individual tax payers on their taxes, while net income is reported by a business. Generally speaking net income can be figured as follows: Revenues (Total dollar figure from operations) (-) Cost of goods sold = Gross Profit -- Selling, General and Administrative Costs (SG&A) (Operating expenses) = Earnings Before Interest,Taxes, and Amortization expenses (EBITA) (-) Depreciation and Amortization= Earnings Before Interest and Taxes(-) Interest Expenses (cost of borrowing money)= Earnings Before Tax (EBT)(-) Tax Expense = Net income
Income which is generated by normal business basic operating activities is called net operating income while other income then operating income is called non operating income like interest income or dividend income etc.
Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc. Revenue income is that income which is generated from basic business operating activities.
the difference between income and consumption
Net operating income (must be a positive number, otherwise would be net operating loss) is the amount after expenses have been deducted out of sales, BUT before INTEREST and INCOME TAXES have been deducted (also called EBIT: Earning before Interest and Taxes). Therefore, the difference is that Net operating income includes interest and income tax expenses, where as Net Income does not include it. Sales (-)CGS Gross profit (-)Operating expenses/depreciation Net operating Income (EBIT) (-)Interest and income taxes Net Income
i don't now u ask some one with brains for all i care p.s. i like pie
The difference in operating income between the two methods is the difference in ending inventory values, which is the fixed overhead costs that have been capitalized as an asset ( inventory ) because overhead costs that have been capitalized as an asset.
there is no difference.