In the field of economics, the term “income”, used in various meanings, has received widespread use. The most frequently received answer to the question of what income is is as follows: this is any regular receipt of funds as a result of any activity. The monetary benefits of the current period enable economic entities to generate or consume savings to increase wealth in the future. According to the application of income, there are various types of them: on a state scale - national income; the profit of the enterprise (at the disposal of legal entities) and the income of the subject of economic activity, of the individual - personal.
Value of income
What is state revenue? This is a national profit, which is determined by the form of manifestation of economic relations arising between economic entities in the process of forming the state budget. The budget fund is replenished as a result of the receipt of various types of payments by business entities and the population.
What is household income ? This question is often of interest not only to specialists in the field of economics, but also to ordinary housewives. By personal income is meant a financial inflow of household funds received or generated by households over a specified period. They are divided into 4 main types, depending on the source of income: wages, profits from entrepreneurial or other commercial activities (investments, securities), transfer payments (scholarships, pensions and unemployment benefits) and benefits derived from informal activities. It is customary to distinguish personal incomes into two specific subgroups: personal incomes and household incomes.
Personal - this is the
money of a particular person with individual needs and goals. Under household cash means a system of formation and use of financial assets of a group of people who lead a joint economy and pursue common goals. To such a group, in the first place, should be attributed to the family.
Determining what income is, it is often identified with the profit of the enterprise, since it performs one of the most important functions of finance - the formation of monetary funds. Revenue is recognized as revenue that affected the increase in economic benefits resulting from the acquisition of tangible assets, in particular cash and other property, as well as the reduction of debt by reducing monetary liabilities, which as a result contributes to the growth of capital of an economic entity. The recognition of revenues by an enterprise is specified by the Tax Code, which states that revenues are recognized exactly in the period in which they took place.
Accounting role
For the effective implementation of any activity, entrepreneurial and household activities, full control and accounting is necessary. Reliable information on
balance sheet items of the enterprise is the most important factor for the rational use of funds and maximum profit from the implementation of commercial activities. Accounting for the income of organizations is carried out by qualified specialists - accountants, the functions of accounting for personal funds are performed by the owner himself. It should be noted that accounting for personal finances is also an important moment in housekeeping. Only the correct use and control of cash provides an opportunity to increase wealth. Accounting for personal cash receipts involves systematization, planning, fixing and analysis.
Studying the finances of households and enterprises, it should be noted their relationship with state revenue. The relationship is the participation of personal money of the population in the system of total national income. Getting its share in the form of wages, profits from entrepreneurial activity, paying taxes and other obligatory payments, the population participates in the formation of national income. Based on this judgment, one can consider the income of the population as part of the country's financial system.