In accounting, do tax payments and withholding get included when finding gross income?
Income Statement is one of the financial statements prepared by the company. It presents how the company has performed financially during a certain period. The income statement includes the following items such as Sales, Cost of Goods Sold, Gross Profit, operating and non-operating expense and net income or loss.
Answer and Explanation:
Tax payments and withholding tax are not included when finding the gross income. Gross income is computed by the total revenue minus the cost of good sold.
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from Financial Accounting: Help and ReviewChapter 5 / Lesson 17