Cash earnings refer to the income that a business generates from its operations after accounting for cash revenues and cash expenses, specifically excluding noncash expenses such as depreciation.
Depreciation allowance refers to the total depreciation deducted against property used in a trade or business or held for the production of income, allowing for an annual deduction for wear and tear and diminution of the property's value. It is also known as accumulated depreciation.
Gross receipts refer to the total income a business receives from all sources before deductions or allowances.
An income stream refers to the regular flow of money generated by a business or investment, essential for evaluating financial health and planning future strategies.
Profit motive refers to the desire to earn a favorable financial return on a business venture. Without a profit motive, tax losses from an activity may be considered a hobby loss, which are only deductible to the extent of income.
In tax law, proprietorship income refers to the income earned within businesses that are sole proprietorships (owned by one person and not incorporated).
Schedule C is a tax form used by individuals to report income and expenses from a business or self-employed activity.
Trading Profit represents the profit of an organization before deductions for interest, directors' fees, auditors' remuneration, and other similar expenses. It is crucial for assessing the core operating efficiency of a business.
Unrelated Business Income (UBI) pertains to income generated by a tax-exempt organization from activities unrelated to its primary exempt purpose.
