Financial Terms | |
Income Tax Expense |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, investment, accounting, financial, credit, payroll, tax advisor, inventory control, Also see related: home financing, property, homes, insurance, home buyer, mortgage, home, condo, buy home, |
Definition of Income Tax ExpenseIncome Tax ExpenseSee income tax provision.
Related Terms:Current Income Tax ExpenseThat portion of the total income tax provision that is based on Deferred Income Tax ExpenseThat portion of the total income tax provision that is the result contribution marginAn intermediate measure of profit equal to sales revenue gross margin, or gross profitThis first-line measure of profit Income Tax ProvisionThe expense deduction from pretax book income reported on the After-tax profit marginThe ratio of net income to net sales. After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Annual fund operating expensesFor investment companies, the management fee and "other expenses," Asymmetric taxesA situation wherein participants in a transaction have different net tax rates. Average tax ratetaxes as a fraction of income; total taxes divided by total taxable income. Before-tax profit marginThe ratio of net income before taxes to net sales. Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Cash flow after interest and taxesNet income plus depreciation. Corporate tax viewThe argument that double (corporate and individual) taxation of equity returns makes Corporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to Deferred taxesA non-cash expense that provides a source of free cash flow. Amount allocated during the Depreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. Double-tax agreementAgreement between two countries that taxes paid abroad can be offset against Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Economic incomeCash flow plus change in present value. Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax Expense ratioThe percentage of the assets that were spent to run a mutual fund (as of the last annual ExpensedCharged to an expense account, fully reducing reported profit of that year, as is appropriate for Fixed-income equivalentAlso called a busted convertible, a convertible security that is trading like a straight Fixed-income instrumentsAssets that pay a fixed-dollar amount, such as bonds and preferred stock. Fixed-income marketThe market for trading bonds and preferred stock. Foreign tax creditHome country credit against domestic income tax for foreign taxes paid on foreign Imputation tax systemArrangement by which investors who receive a dividend also receive a tax credit for Income beneficiaryOne who receives income from a trust. Income bondA bond on which the payment of interest is contingent on sufficient earnings. These bonds are Income fundA mutual fund providing for liberal current income from investments. Income statement (statement of operations)A statement showing the revenues, expenses, and income (the Income stockCommon stock with a high dividend yield and few profitable investment opportunities. Interest equalization taxtax on foreign investment by residents of the U.S. which was abolished in 1974. Interest tax shieldThe reduction in income taxes that results from the tax-deductibility of interest payments. Investment incomeThe revenue from a portfolio of invested assets. Investment tax creditProportion of new capital investment that can be used to reduce a company's tax bill Limited-tax general obligation bondA general obligation bond that is limited as to revenue sources. Marginal tax rateThe tax rate that would have to be paid on any additional dollars of taxable income earned. Monthly income preferred security (MIP)Preferred stock issued by a subsidiary located in a tax haven. Net incomeThe company's total earnings, reflecting revenues adjusted for costs of doing business, Personal tax view (of capital structure)The argument that the difference in personal tax rates between Progressive tax systemA tax system wherein the average tax rate increases for some increases in income but Short-term tax exemptsShort-term securities issued by states, municipalities, local housing agencies, and Split-rate tax systemA tax system that taxes retained earnings at a higher rate than earnings that are Spread incomeAlso called margin income, the difference between income and cost. For a depository TANs (tax anticipation notes)tax anticipation notes issued by states or municipalities to finance current Tax anticipation bills (TABs)Special bills that the Treasury occasionally issues that mature on corporate Tax booksSet of books kept by a firm's management for the IRS that follows IRS rules. The stockholder's Tax clawback agreementAn agreement to contribute as equity to a project the value of all previously Tax differential view ( of dividend policy)The view that shareholders prefer capital gains over dividends, Tax-exempt sectorThe municipal bond market where state and local governments raise funds. Bonds issued Tax free acquisitionA merger or consolidation in which 1) the acquirer's tax basis in each asset whose Tax havenA nation with a moderate level of taxation and/or liberal tax incentives for undertaking specific Tax Reform Act of 1986A 1986 law involving a major overhaul of the U.S. tax code. Tax shieldThe reduction in income taxes that results from taking an allowable deduction from taxable income. Tax swapSwapping two similar bonds to receive a tax benefit. Tax deferral optionThe feature of the U.S. Internal Revenue Code that the capital gains tax on an asset is Tax-deferred retirement plansEmployer-sponsored and other plans that allow contributions and earnings to Tax-timing optionThe option to sell an asset and claim a loss for tax purposes or not to sell the asset and Taxable acquisitionA merger or consolidation that is not a tax-fee acquisition. The selling shareholders are Taxable incomeGross income less a set of deductions. Taxable transactionAny transaction that is not tax-free to the parties involved, such as a taxable acquisition. Two-tier tax systemA method of taxation in which the income going to shareholders is taxed twice. Underwriting incomeFor an insurance company, the difference between the premiums earned and the costs Value-added taxMethod of indirect taxation whereby a tax is levied at each stage of production on the value Withholding taxA tax levied by a country of source on income paid, usually on dividends remitted to the GENERAL-AND-ADMINISTRATIVE EXPENSESWhat was spent to run the non-sales and non-manufacturing part of a company, such as office salaries and interest paid on loans. INCOME STATEMENTAn accounting statement that summarizes information about a company in the following format: INCOME TAXWhat the business paid to the IRS. NET INCOMEThe profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales. OPERATING EXPENSESThe total amount that was spent to run a company this year. RATIO OF NET INCOME TO NET SALESA ratio that shows how much net income (profit) a company made on each dollar of net sales. Here’s the formula: RATIO OF NET SALES TO NET INCOMEA ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way: SELLING EXPENSESWhat was spent to run the sales part of a company, such as sales salaries, travel, meals, and lodging for salespeople, and advertising. VARIABLE EXPENSESThose that vary with the amount of goods you produce or sell. These may include utility bills, labor, etc. Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. ExpensesThe costs incurred in buying, making or producing goods and services. Profit before interest and taxes (PBIT)See EBIT. Residual income (RI)The profit remaining after deducting from profit a notional cost of capital on the investment in a business or division of a business. Accrued expenses payableexpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. Depreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period. Dividend incomeincome that a company receives in the form of dividends on stock in other companies that it holds. ExpensesCosts involved in running the company. Income StatementOne of the basic financial statements; it lists the revenue and expense accounts of the company. Interest incomeincome that a company receives in the form of interest, usually as the result of keeping money in interest-bearing accounts at financial institutions and the lending of money to other companies. Net incomeThe last line of the income Statement; it represents the amount that the company earned during a specified period. Office expenseThe amount of expense incurred for the general operation of an office. Payroll expenseThe amount paid to employees for services rendered; synonymous with salary expense and wage expense. Payroll tax expenseThe amount of tax associated with salaries that an employer pays to governments (federal, state, and local). Payroll taxes payableThe amount of payroll taxes owed to the various governments at the end of a period. Prepaid expensesexpenses that have been paid for but have not yet been used up; examples are prepaid insurance and prepaid rent. Rent expenseThe amount of expense paid for the use of property. Salary expenseThe amount paid to employees for services rendered; synonymous with payroll expense and wage expense. Wage expenseThe amount paid to employees for services rendered; synonymous with salary expense and payroll expense. accrued expenses payableThe account that records the short-term, noninterest- earnings before interest and income tax (EBIT)A measure of profit that fixed expenses (costs)expenses or costs that remain the same in amount, Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |