Question

Question 1

A) How does the finance concept of gross income and operating expenses differ from the accounting concept of gross income and operating expenses.

B)Which is the correct definition.

Answer 1

Finance Concept

Gross income is the total salary employee gets before any deductions.

Operating expenses are the personal day to day expenses incurred for living.

Accounting Concept

Gross income is the amount comapy makes on a product less its cost of goods sold

Gross Income = Gross Revenue - COGS

Operating expenses is an expense that a business incurs for carrying out its business as usual

Both definitions are correct, just the perspective changes!