Tuototili

Tuototili is a Finnish term that translates to "income account" or "revenue account" in English. It refers to a specific type of financial account used in accounting and business to record all forms of income generated by an entity. This includes revenue from sales of goods and services, as well as other forms of income such as interest earned, dividends received, or rental income. The tuototili is a fundamental component of an income statement, which summarizes a company's financial performance over a specific period.

In a double-entry bookkeeping system, a tuototili is typically a credit balance account. This means that increases in income are recorded as credits to the tuototili, and decreases or adjustments are recorded as debits. The balance of the tuototili at the end of an accounting period is then transferred to retained earnings or profit and loss summary. Understanding and accurately managing the tuototili is crucial for assessing profitability, making financial decisions, and fulfilling tax obligations. Various sub-accounts may exist within the broader tuototili category to provide more detailed breakdowns of income sources, allowing for better analysis and control over revenue streams.