A BASIC BOOKKEEPING AND ACCOUNTING COURSE
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Definition: Gross Income

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Definition of Gross Income

What is Gross Income?

Gross Income is the total amount of a business's income and earnings before subtracting any costs. Costs are subtracted from Gross Income to calculate gross profit and net profit. The term "gross" means large amount, the term "net" means smaller amount, and the term "revenue" means incoming gains, as in gains in cash from sales or interest earned from bank accounts.

For example, if a business had a total gross income of $100,000 and it spent $60,000 to obtain its income, its Gross Income would equal $100,000 and its net profit would be $40,000.

​Net Profit = Gross Income - Gross Expenses
Net Profit = $100,000 - $60,000
Net Profit = $40,000

Gross Income can be calculated at various stages. For example, a business can calculate its gross Income on shoe sales separate from coat sales. Since this is the case, gross income needs to be carefully defined so that it is not misinterpreted, as in total gross income from all income sources verses total gross income from shoe sales.

Continue Learning About Gross Income in an Interactive Bookkeeping Textbook

Over 4+ Hours of Free Lessons

The Addictive Accounting training course has a purpose:

To help you quickly master the fundamentals of bookkeeping and accounting!

  • Simplified - created for students and business owners
  • Comprehensive - an interactive bookkeeping and accounting textbook
  • Practice Make Perfect - in a hands-on bookkeeping simulator
  • Learn Finance - cash, profit, equity, and balance statements
  • Quiz Yourself - test your comprehension with instant feedback
  • Career Boost - communicate finance with confidence
  • At Your Pace - complete the course in a week or a weekend​
  • Teacher's Aid - can be used as an auxiliary tool to enhance learning
  • CPA Exam Prep - review fundamentals to greatly improve your score

​If you are a student who is planning on studying accounting, or a student who is struggling to learn the concepts, this course is for you. If you want an A grade, take this prep course! If you are business owner who wants to fully understand their personal bookkeeping, this course is also for you.

Practice Gross Income in an Accounting Simulator

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Rather than just read about gross income, learn and practice calculating it as a bookkeeper in a hands-on accounting simulation. Learn more about our accounting simulation app or see what you can learn for free in the Addictive Accounting course.

Over 4 Hours of Free Course Content,
No Ads,
​and No Personal Data Collected​

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​For iPads, iPhones, and Android phones and tablets

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  • Home
  • Course Content
  • Accounting Simulator
  • Knowledge
    • Questions
    • Definitions
    • Bookkeeping & Accounting Tutorials
  • Support
    • About Us
    • Contact Us
    • Get Notified