Business Income

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DEFINITION of 'Business Income'

Any income that is realized as a result of business activity. Business income is a type of earned income, and is classified as ordinary income for tax purposes.

INVESTOPEDIA EXPLAINS 'Business Income'

Business income can be offset with business expenses and business losses. It can be either positive or negative in a given year.

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  2. Why can additional paid in capital never have a negative balance?

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  4. How does additional paid in capital affect retained earnings?

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  5. How often should a small business owner go through a bank reconciliation process?

    Small business owners should go through the bank reconciliation process at least monthly, and many business consultants recommend ... Read Full Answer >>
  6. Why is a company's Cash Flow from Financing (CFF) important to both investors and ...

    A company's cash flow from financing activities (CFF) is important to investors and creditors because it depicts how much ... Read Full Answer >>
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