Ordinary Income Vs Revenue

The term revenue depicts the total amount of money earned by an organization by sale of products or rendering of services and at what price is it sold or rendered while the term income is obtained by deducting all the direct and indirect expenses from revenue showing how well an organization utilizes its resources and achieves its goals using its limited resources.

Ordinary income vs revenue. For most people the biggest chunk of ordinary income comes from their job. Meanwhile from a personal perspective ordinary income can be defined as any kind of cash inflow that is subject to income tax as outlined by the internal revenue service irs. Ordinary revenue was collected annually and was seen as a king s right. In many situations turnover and revenue describe such similar ideas that they can be used interchangeably without problems.

The words are commonly used as synonyms to describe the total sales or income of a business over a given period. Ordinary income refers to income that is taxed according to the regular u s. For henry vii ordinary revenue consisted of income from crown lands custom duties feudal dues and profits of justice. At first glance the premise of turnover vs revenue seems simple.

Generally speaking net income can be figured as. Profit from an ownership interest in a sole proprietorship partnership limited liability company or subchapter s corporation also counts as ordinary income. For individuals however income generally refers to the total wages salaries tips rents interest or dividend received for a specific time period. Henry vii particularly targeted revenue from crown lands as if the income from them was maximised it represented a considerable percentage of henry s annual income.

Tax brackets and includes many types of income. Revenue is the total amount of money the business receives from its customers for its products and services. Think of ordinary income as that which is earned and reported by individual tax payers on their taxes while net income is reported by a business. Income revenue expenses.