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Is gross sales the same as gross income? |
They are not the same, although they can be.
Gross sales are just what it says...sales before any adjustments.
Gross income would include ALL income from all sources. You could sell items, but you could also rent items (which would be shown as Rental Income). Or, you could make a loan to someone and the interest from that loan would be considered income, as well. If you do work for someone (like a mechanic), that would be considered "Labor Income".
Also, just because you sell something (which would be included in Gross Sales) doesn't mean it can be regarded as Income immediately. If you accept credit cards or payment plans, a sale does not equal income until the money is actually received by you.
If your business only sells items and only accepts cash for sales, then your Gross Sales and your Gross Income would probably be the same.
First answer by Deal66. Last edit by Deal66. Contributor trust: 23 [recommend contributor]. Question popularity: 28 [recommend question]
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