difference between gross profit and gross income
Back to Top

difference between gross profit and gross income

The new classic "perfect" price mechanism In 1946, the famous British economist J.R. hicks, in value and capital, developed the concept of income into a general concept of economic gain. He argues that the real purpose of computing revenues is to make people aware of the amount of money they can spend without making them poorer. Accordingly, he gave a generally accepted definition of "the maximum amount of consumption that a person can spend at the end of the term, at the same level of prosperity". Hicks's definition, though primarily for personal gain, applies to businesses as well. In the case of the enterprise, according to this definition, the enterprise income can be understood as the maximum amount that can be allocated in the enterprise cost accounting period under the same amount of capital at the end of the term and the beginning of the period. In the late 20th century, in the context of China's reform and opening up and modernization, and the influx of new concepts in the field of information technology, the meaning of "enterprise" changed. On the one hand, a large number of "enterprises" have emerged in the non-planned economy. On the other hand, in some new concepts, the meaning is not limited to commercial or for-profit organizations, which are currently mainly derived from the translation of the word "enterprise" in English. Therefore, the word "enterprise" appears in public media in two ways: Announced on the UK economy in the international monetary fund annual health check results, published in the Treasury's speech, ms lagarde hit back at the recession after the referendum criticism at the upcoming future fund.