What is income: varieties and relationships

In the sphere of economics, the term "income", used in various meanings, has received the widest application. The most frequently received answer to the question about what income is, is as follows: this is any regular flow of money from an activity. The monetary benefits of the current period enable economic entities to form or consume savings to increase prosperity in the future. According to the application of income, there are different types: on the national scale, national income; The profit of the enterprise (at the disposal of legal entities) and the income of the subject of economic activity, the individual is personal.

Value of income

What is the income of the state? This is the national profit, which is determined by the form of the 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 receipts of various types of payments of economic 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 ordinary housewives. Personal income refers to the financial inflow of household funds received or produced by households over a certain period of time. 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 the benefits derived from informal activities. Personal income is divided into two specific subgroups: personal and household income.

Personal - this is the money of a particular person with individual needs and goals. The funds of households understand the system of formation and use of financial assets of a group of people who are engaged in joint business and pursue common goals. To this group, in the first place, it is necessary to include a family.

Defining what income is, it is often identified with the profit of the enterprise, as it performs one of the most important functions of finance - the formation of monetary funds. Proceeds are recognized income that affected the increase in economic benefits as a result of the acquisition of tangible assets, in particular cash and other property, as well as debt reduction due to reduction of monetary obligations, which as a result contributes to the growth of the economic entity's capital. Recognition of income by the enterprise is specified by the Tax Code, where it is stipulated that receipts are recognized exactly in the period in which they took place.

The role of accounting

For effective implementation of any activity, business and household activities, a full control and accounting is necessary. Reliable information about the articles of the balance of the enterprise is the most important factor for the rational use of funds and the maximum profit from commercial activities. Accounting for the incomes of organizations is carried out by qualified specialists - the accountant, the functions of accounting for personal funds are performed by the owner himself. It should be noted that accounting for personal finance is also an important aspect of housekeeping. Only the proper use and control of cash allows an increase in welfare. Accounting for personal cash receipts involves systematization, planning, recording and analysis.

Investigating the finances of households and enterprises, it should be noted their relationship with the state's income. The relationship consists in the participation of the personal money resources of the population in the system of general national income. Receiving their share in the form of wages, profits from entrepreneurial activity, paying taxes and other mandatory 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.