Tell me about the definition of income and what are the common items of income.

The definition of income refers to the total inflow of economic benefits formed by enterprises in their daily activities, which will lead to the increase of owners' rights and interests and has nothing to do with owners' investment capital.

Common income items usually include operating income, investment income, fair value change income, asset disposal income, other income, non-operating income and so on.

Income refers to the total flow of economic benefits formed by enterprises in their daily business activities, which will lead to the increase of owners' equity, regardless of the capital invested by owners. Generally speaking, income is the money earned by selling things.

There are income from selling goods and providing services, income from transferring the right to use assets, interest income from lending money to others, rental income from renting houses, dividend income from investing in stocks, etc.

According to different sources of income, the income statement divides income into the following five categories.

1, income from main business. The main business income is used to calculate the income generated by the daily activities of the enterprise, such as selling goods, providing labor services and transferring the right to use assets. As the name implies, it is the most important source of income in the production and operation of enterprises.

For example, selling cooked rice is the main business income for the old mother's restaurant. Lao Hao's family next door later opened a restaurant. One day, when his family ran out of rice, he temporarily used some rice from his old mother's restaurant. The rice in the old mother's restaurant costs 6 cents a catty and is sold to him at 7 cents a catty. Does the income from selling rice count as the income from main business?

No, because my mother's restaurant doesn't sell rice for a living and it doesn't happen several times a year, so it's not the main business income. But if it is a rice shop, selling rice is its main business income.

2. Other business income. Other business income is used to calculate the sales income or business income other than the main business income of the enterprise. Such as sales materials, purchase and sale, packaging and rental income.

For example, as we mentioned earlier, my mother's restaurant occasionally sells rice, but what she sells is actually the raw materials of the enterprise, which belongs to this project.

3. Investment income. Investment income is used to calculate the profit and loss of enterprises' foreign investment.

For example, the old mother's restaurant invested in a butcher shop. By the end of the year, the butcher Liu gave the restaurant the promised 12 yuan, which was the investment income. Investment is risky. When the stock market enters a "bear market" and we are forced to "cut our meat", of course, we lose money, and the loss is directly indicated by a negative sign.

4. subsidy income. Subsidy income is used to calculate the subsidy income (including refunded value-added tax) and fixed subsidies actually received by enterprises according to regulations. In order to realize macro-control, the state will give some subsidies to some encouraged enterprises or projects in the form of tax rebate, and such income will be accounted for in the project.

5. Non-operating income. Non-operating income is used to calculate various incomes that are not directly related to production and operation, including fixed assets inventory surplus, net income from disposal of fixed assets, net income from fines, etc.