Accumulating compensated absences refer to employee benefits that an organization must account for, representing the amount accrued but not yet taken by employees.
In taxation, active income refers to earnings derived from active involvement in work and trade, including salaries, wages, and commissions. It is distinct from portfolio and passive income, which come from investments and activities in which the taxpayer does not materially participate.
Aggregate income represents the sum total of all incomes within an economy before adjusting for inflation, taxes, or types of double-counting. It is a fundamental economic measure essential for assessing the economic health and output of a nation.
The All-Inclusive Income Concept is a principle used in accounting to include all items of profit and loss in a statement to arrive at a figure of earnings. It is commonly used in the UK and the USA for a comprehensive view of an enterprise's financial performance.
A Comprehensive Income Statement is a financial document that reports a company's total earnings, including those not realized in the income statement, such as unrealized gains and losses, allowing for a more inclusive picture of financial performance.
Earnings, also referred to as net income or profit, is a crucial metric in financial reporting which forms the basis for calculating earnings per share. A key aspect of corporate finance, earnings definition and reporting have evolved to curb creative accounting and ensure transparency.
The profit a company generates that is available for distribution as dividends to the holders of ordinary shares.
EBITDA is a measure of a company's overall financial performance and is used as an alternative to net income in some circumstances. It focuses on the earnings generated from the core business operations by excluding interest, taxes, depreciation, and amortization expenses.
The Fixed-Charge Coverage Ratio (FCCR) is a financial metric that reflects a company's ability to cover its fixed charges, such as interest and lease expenses, with its earnings before interest and taxes (EBIT). It's a key metric used by lenders and investors to assess a company's financial health and risk level.
Foreign emoluments refer to earnings received by a person domiciled outside the UK from employment with a non-resident employer.
Income tax is a tax imposed by governments on individuals and businesses based on their earnings within a fiscal year. Understanding income tax is essential for compliance and financial planning.
Net income, also known as net earnings or net profit, is the sum remaining after all expenses have been fulfilled. It serves as a crucial metric that indicates a company's profitability.
Operating Income, also known as Operating Profit or Operating Earnings, is a measure of a company's profitability that excludes interest and income tax expenses. It is used to evaluate the performance of a company's core business activities.
A stock is considered overvalued when its current market price does not seem justified based on its earnings and growth potential, suggesting that it is likely to decrease in price.
Preferred Dividend Coverage (PDC) is a financial ratio used to measure a company's ability to pay its preferred dividends from its earnings. It is calculated by dividing the net income after interest and taxes, but before the common stock dividends, by the dollar amount of preferred stock dividends. This ratio tells how many times over the preferred dividend requirement is covered by current earnings.
A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.
Profit margin is a measure of profitability that calculates how much of every dollar earned by a company winds up as profit. It is critical for assessing the efficiency and performance of a company.
Profitability and profitability ratios are essential metrics used to measure the efficiency and success of a business in generating earnings relative to various financial aspects like sales, assets, and equity.
Profits available for distribution refer to the earnings or surplus that a company can allocate to its shareholders in the form of dividends or other forms of payouts.
Sales revenue is the income generated from the sale of goods or services by a company. It is a key determinant of a company's financial health, and it is crucial for assessing growth potential and earning assessments.
An investment option where accumulated earnings are not taxed until the investor takes possession of the assets.
A trading account, crucial in financial accounting, involves comparing the cost of sales with the revenue generated to determine the gross profit within a profit and loss account.
Undistributed profit refers to the profit earned by an organization that has not been distributed to its shareholders by way of dividends. Such sums are available for later distribution but are frequently used by companies to finance their activities.
Undistributed profits, also known as retained earnings or net income, refer to the portion of a company's earnings that is not distributed to shareholders as dividends but is retained by the company for reinvestment in its operations, debt repayment, or other purposes.
