gross percentage profit Positive economic profit is sometimes described as excess profit. To read more The other part of the republican strategy (known as "starve the beast") tax cut higher deficits will be used to fight for the so-called entitlement spending cuts, such as medicare, medicaid, food stamps and social security. Again, this is a risky proposition because the elderly, the middle class and the low-income americans depend heavily on these programs. Yes, the working and non-working poor, who get welfare or food stamps, include minorities who tend to vote for the Democratic Party. But the millions of blue-collar, socially conservative whites who voted for Mr Trump relied on these and similar schemes. 4. The determination of accounting earnings shall follow the principle of revenue confirmation. The current accounting practice and the law's view of earnings are still: only after the relevant conditions of the asset value increase are met, the benefits can be generated. Income and appreciation must be measured objectively, determined or unalterable, and must be verified through some business or accounting matters. In other words, the determination of accounting income should be based on the following two principles: the realization principle of income determination and the prudent principle of income determination. According to the realization principle of revenue recognition, the enterprise income should be divided into operating income and profit and loss. The determination of operating earnings must happen in selling goods or services and other key issues, and the profit and loss refers to the production of the assets held realized gains and losses, unrealized gains and losses caused by price change is not confirmed. According to the principle of steady earnings determine when a has a variety of economic business accounting methods for when the choice, should choose the most don't overestimate the method of income, it should not be overestimated revenues and should not be underestimated cost two aspects.