Brúttótekjum

Brúttótekjum refers to the total income earned before any deductions or taxes are taken out. It is a fundamental concept in accounting and personal finance, representing the gross amount of money a person or business receives from all sources. For individuals, brúttótekjum typically includes wages, salaries, investment income, rental income, and any other form of earnings. For businesses, it encompasses revenue generated from the sale of goods and services, as well as any other income streams. Understanding brúttótekjum is the first step in calculating net income, which is the amount of money remaining after all expenses and taxes have been paid. This distinction is crucial for budgeting, financial planning, and tax purposes. Financial statements often present brúttótekjum prominently as a measure of overall financial performance or earning capacity.