In accounting, do tax payments and withholding get included when finding gross income?

Question:

In accounting, do tax payments and withholding get included when finding gross income?

Income Statement:

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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How to Calculate Gross Profit Margin: Definition & Formula

from Financial Accounting: Help and Review

Chapter 5 / Lesson 17
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