What are Direct and Indirect Income?

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What is Income? Income Amount Received for providing a goods or Service is Income. Example:- Income from Goods Sales of shopkeeper,Factory Income from Service Provider Consultancy Charges of an Advocate Net Income(Profit) = Income - expense What are Direct & indirect Income? Nature of Income Direct Income Indirect Income Income from Extra income from Main Business Model other source Example:- Example:- Sale of Goods by Interest Income Shopkeeper,Factory from Bank Professional Profit from Charges of CA Sale of Property This is also called This is also called Revenve from Operation Other Income Classify the following into Direct and indirect Income and expenses? Following are the transaction in the factory Purchase of Raw 50000 Direct Material Expense Sell Finished goods 150000 Direct to Customer for Income Pay Wages to labour 10000 Direct Expense Pay Electricity Bill of 20000 Direct Factory Expense Pay Electricity Bill of 5000 Indirect Office Expense Pay Internet Bill of 1000 Indirect office Expense Received Interest on 2000 Indirect Money in bank A/c Income Selling old Machine costing 3000 Indirect Rs 10000 for 13000 Income and earned Income Direct Income 150000 This is also Indirect Income 5000 called Revenue 155000 Expenses Direct Expense 80000 Indirect Expense 6000 86000 This is also called as Net income Difference Between Revenue Income & Net Income Revenue Income Net Income Income from Total of Income operation Direct +Indirect Less (Direct Income) Income Expense Definition Revenue :- Amount received or receivable by the enterprise from its operating activities Income :- It is total of revenue from direct & indirect source. Net Income:- It is excess of revenue over expenses