Gross income refers to the total income earned by an individual or a business before any deductions or taxes are taken into account. It includes all sources of income, such as wages, salaries, bonuses, tips, interest, dividends, rental income, royalties, and any other earnings.
For individuals, gross income typically includes income from employment, self-employment, investments, rental properties, and other sources. It's the starting point for calculating taxable income, from which deductions and exemptions are subtracted to determine the amount of income subject to taxation.
For businesses, gross income is the total revenue generated from sales of goods or services before subtracting any operating expenses, taxes, or other costs. It's a key metric for assessing a company's financial performance and is used in calculating profitability ratios.
In summary, gross income represents the total earnings before any deductions, expenses, or taxes are taken into account, serving as a foundational figure for further financial analysis and tax calculations.
