Salary Slip Components A Salary slip components is a document issue by an employer to an employee detailing their earnings and deductions for a specific pay period. It includes information such as basic salary, allowances, taxes, and deductions. Salary slips serve as proof of income and provide transparency in the employer-employee relationship. Salary Slips… Read More »
Profit Financial Statements To find the profit on financial statements, you can refer to the following sections: 1. Income Statement Profit and Loss Statement: The income statement is a financial statement that summarizes the revenues, expenses, and resulting profit or loss for a specific period. The profit typically displayed as “Net Income” or “Net… Read More »
Is Net Turnover the Same as Net Profit? When managing finances or reviewing a company’s performance, it’s essential to understand the difference between key financial terms like net turnover and net profit. While these terms might sound similar, they refer to entirely different concepts in accounting. Net Turnover: Net turnover, also known as net sales,… Read More »
Revenues vs Expenses Revenues vs Expenses are two important terms in accounting and finance, and they are use to measure the financial performance of a business. It is the income earn by a business from the sale of goods or services. It is the money that flows into the business as a result of its… Read More »
Direct and Indirect Expenses Direct and indirect expenses Difference DirectExpense Direct expense or income are those expenses or income that are directly related to the production or sale of goods or services. They are directly traceable to a specific product or service and can be allocated to it without any difficulty. Examples of direct expenses… Read More »
Basic accounting terminologies 1.Assets: Resources owned by a business that has monetary value and are expected to provide future benefits. 2.Liabilities: Obligations of a business to pay debts or other financial obligations. 3.Equity: Equity refers to the ownership interest in a company or property, representing the residual value after all liabilities have been paid… Read More »
What is meant by net proceeds in taxation In taxation, the term “net proceeds” refers to the amount of money left after all allowable deductions, expenses, and costs have been subtracted from the total gross income or gross proceeds. The concept of net proceeds is essential for both individuals and businesses because it determines… Read More »
Net taxable income Net Taxable income represents the portion of income that is liable to taxation after considering all eligible deductions and exemptions. It is the income remaining after deducting allowable expenses like contributions to provident fund, investments in specified tax-saving schemes, medical expenses, and more from the gross income. To visit https://www.gst.gov.in/ To calculate… Read More »
Difference between income statement and profit & loss account The terms “income statement” and “profit and loss account” are often used interchangeably to refer to a financial statement that summarizes a company’s revenues and expenses during a specific period of time. However, in some contexts, there may be a subtle difference in meaning. In general,… Read More »
Understanding the Difference Between Net Worth, Profit, and Turnover In the realm of finance and business, terms like net worth, profit, and turnover are often mentioned in discussions about a company’s financial health and performance. Net worth, profit, and turnover are three important financial terms used in business accounting. It refers to the total value… Read More »
