Income Measurement

Income measurement refers to the process of determining how much money an individual or business earns over a specific period, usually a year. For individuals, this includes wages, salaries, and any additional revenue sources like investments. For businesses, it encompasses sales revenue minus costs and expenses, revealing net income or profit. Accurate income measurement is crucial for financial planning, making informed decisions, and assessing financial health. It also plays a significant role in taxation, as governments rely on these figures to calculate tax obligations. Essentially, it’s about understanding how much money is coming in.