Accounting Income
/ˈæk.aʊn.tɪŋ ˈɪn.kʌm/
Definitions
- (n.) The net profit or loss calculated according to generally accepted accounting principles (GAAP), reflecting a company’s financial performance before adjustments for tax or cash flow.
The corporation reported an increase in accounting income despite fluctuations in cash flow.
Forms
- accounting income
Related terms
See also
Commentary
Accounting income is distinct from taxable income; drafters should specify which measure is referenced to avoid ambiguity in contracts or financial disclosures.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.