In-Kind Donation

What is an In-Kind Donation? Definition: An in-kind donation is a non-cash donation made to a 501(c)(3). These donations help nonprofit organizations in meeting their goals. Donors to a 501(c)(3) can claim a tax deduction for the value of the gifts that they make in certain circumstances. What does In-Kind Donation...

Income

What is Income? Definition: Income refers to the money that is received for selling a good or for providing a service. It could be received by an individual or by a business and is usually subject to taxes. What does Income mean? It’s important to remember to check the context in...

Income Approach

What is the Income Approach? Definition: The income approach is one of the methods by which an investor can value a property. This method, which is also known as the income capitalization approach, involves dividing the net operating income that a property generates by the capitalization rate. What does Income Approach...

Income Statement

What is an Income Statement? Definition: An income statement provides details about a firm’s earnings or income for a certain period. It reduces the company’s revenues by its total expenses to arrive at the net income. The income statement is one of the most important financial accounting statements prepared by a...

Income Summary

What is an Income Summary? Definition: An income summary is a temporary account into which the balances of the revenue and expense accounts are transferred at the end of the accounting period. The net amount in the income summary account is the profit or loss for that period What does Income...

Incurred

What is Incurred? Definition: “Incurred” is an accounting term that conveys that an expense has taken place. The payment of the relevant amount could be made at a later date. What does Incurred mean? When a company makes a purchase on credit, it incurs an expense on the date on which...

Inelastic Supply

What is Inelastic Supply? Definition: The supply of a good is said to be inelastic if a change in the price offered for it does not result in a proportionate change in the quantity supplied. What does Inelastic Supply mean? Consider a situation where a particular good is selling for $100....

International Trade

What is International Trade? Definition: International trade is the exchange of goods and services between different countries. In dollar terms, the total of exports and imports for all the nations of the world was over $30 trillion in 2017. What does International Trade mean? One of the reasons for the large...

Investing Activities

What are Investing Activities? Definition: The cash flow statement of a company provides details of its investing activities. These relate to the increase or decrease in a company’s cash balance as a result of the sale or the purchase of long-term assets such as plant and equipment. What does Investing Activities...