Gross Earnings

Gross Earnings
1. For individuals, the total income earned in a year, as calculated prior to any tax deductions or adjustments.

2. For public companies, gross earnings is an accounting convention, referring to the amount of initial profit left over from total revenues for a specified time period, once cost of goods sold have been deducted.

1. For example, consider John who earned a total of $50,000 for the recently completed fiscal year, and made $5,000 of contributions to a government-sponsored savings plan. Because his contributions reduce his taxable earnings, John is allowed to base his tax calculations off taxable earnings of $45,000, while his actual gross earnings for the year are $50,000.

2. A company's gross earnings are reported periodically on its income statement. The first line of the income statement reports a company's total sales for a given time period. When cost of goods sold (COGS) is subtracted from this number, the remaining difference is referred to as the company's gross earnings.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • gross earnings — plural noun A person s total income received from all sources • • • Main Entry: ↑gross …   Useful english dictionary

  • gross earnings — /grəυs ɜ:nɪŋz/ plural noun total earnings before tax and other deductions …   Marketing dictionary in english

  • gross earnings — /grəυs ɜ:nɪŋz/ plural noun total earnings before tax and other deductions …   Dictionary of banking and finance

  • gross earnings — A person s total taxable income prior to adjustments. Bloomberg Financial Dictionary See: adjusted gross income. Bloomberg Financial Dictionary …   Financial and business terms

  • gross earnings — Total income and receipts of a person or business before deductions and expenses. See gross income …   Black's law dictionary

  • gross earnings — Total income and receipts of a person or business before deductions and expenses. See gross income …   Black's law dictionary

  • gross — 1 / grōs/ adj [Middle English, immediately obvious, from Middle French gros thick, coarse, from Latin grossus] 1: flagrant or extreme esp. in badness or offensiveness: of very blameworthy character a gross violation of the rules of ethics a gross …   Law dictionary

  • earnings — earn·ings n pl 1: something (as wages or dividends) earned as compensation for labor or the use of capital 2: the balance of revenue for a specified period that remains after deducting related costs and expenses incurred compare profit Merriam… …   Law dictionary

  • earnings — Income. That which is earned; i.e., money earned from performance of labor, services, sale of goods, etc. Revenue earned by an individual or business. Earnings generally include but are not limited to: salaries and wages, interest and dividends,… …   Black's law dictionary

  • earnings — Income. That which is earned; i.e., money earned from performance of labor, services, sale of goods, etc. Revenue earned by an individual or business. Earnings generally include but are not limited to: salaries and wages, interest and dividends,… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”