- For companies, Gross income is revenue minus the cost of goods sold. Also called gross profit.
- For workers, Gross income is earnings before taxes are taken out or other adjustments are made. The figure after adjustments is net income.
A company's gross income/gross profit is a measure of how efficiently it is doing business, because it shows how much money is left over after the costs needed to produce and sell the product are taken out. Check out the gross profit entry for a fuller explanation.
Related Fool Articles
Recent Mentions on Fool.com
- 3 Things You Probably Don't Know About Roth IRAs
- Retirement Planning: Read This Before Opening an IRA
- Overpay Your Obamacare Penalty? How to Get Your Money Back
- 5 Things We Still Don't Know About Obamacare
- Use the Backdoor Roth IRA While You Still Can
- 6.6 Million People Just Learned the Hard Way How Much It Costs to Be Uninsured Under Obamacare