What does capital gain mean? Difference Between Capital Gains and Investment Income

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The word you are talking about is one of the professional vocabulary, mastering the professional vocabulary can make you feel like a fish in water in the learning of the industry, the translation and meaning of this word is as follows: the rise in the value of capital assets (investment or real estate), so that its value is higher than ****. This gain can only be realised at the time of the underlying asset.

Capital gains may be short-term (one year or less) or long-term (more than one year) and must be subject to income tax.

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Proceeds refer to the receipt of natural or legal fruits in respect of the property. The right to proceeds may also be acquired by a non-owner in accordance with the provisions of the law or the consent of the owner. Production or commercial income, operating income, and benefits.

Economic concepts. Historically, the concept of earnings first appeared in economics.

In The Wealth of Nations, Adam Smith defined earnings as "that portion of the expendable amount that does not erode capital" and saw earnings as an increase in wealth. Later, most economists inherited and developed this view. In 1890, Alfred Maarshell introduced Adam Smith's "increase in wealth" into the concept of income in his Principles of Economics, and put forward the idea of economic income that distinguishes between real capital and value-added income.

In the early 20th century, the famous American economist Irvin Fisher developed the theory of economic returns. In his book "The Nature of Capital and Income", he first analyzed the concept of income from the manifestation of income and proposed three different forms of income.

1) Spiritual gain - spiritual satisfaction;

2) real gains – an increase in material wealth;

3) Monetary gains – increase the monetary value of an asset. Among the three different forms of income mentioned above, there are both measurable and non-measurable. Where:

Spiritual gains are too subjective to measure, while monetary gains are easy to measure because they do not take into account the static concept of currency value changes. As a result, economists focus only on real returns.

First, the meaning is different:

Capital gains. It is in the ** market.

Capital gains investment refers to the difference in price gains obtained by buying low and selling high assets (such as **, bonds, *** and real estate, etc.). Investing these earnings is capital gains investment.

Second, the expression is different:

In terms of connotation, income is a taxpayer as income tax.

All or part of the net profit of the taxable object.

is a tax term or tax law term that is somewhere between profit and tax basis. Gains, on the other hand, are gains from capital, and although they are also tax terms or tax law terms, they are both evidence of all capital gains and all or part of the net income of the taxpayer as the subject of income tax.

Capital gains. It refers to the income obtained from capital items such as ****, bonds or real estate minus its book value.

after the balance. Some countries impose a profits tax on capital gains, calculated on the difference between the purchase** and the final sale** of the capital account and the prescribed tax rate. It is generally believed that the appreciation of the capital account will take a number of years of accumulation before it can finally be formed, in order to prevent the impact of profits tax on the capital market.

investment, so the tax rate is lower, and the proportional tax rate is usually applied.

The above content reference: Encyclopedia - Capital Gains.

Investment income refers to the income obtained by the enterprise from foreign investment (the loss incurred is negative), such as the dividend income obtained by the enterprise from foreign investment, the interest income of bonds, and the profit shared by joint operation with other units.

Investment income is a profit and loss account, a profit and loss account.

Decrease the debit and increase the credit. The accounts that are accounted for using the "Investment Income" account include: investment income from certificates and investment real estate.

of rents, corporate disposal of transactional financial assets.

Transactional financial liabilities, profit and loss available for the realization of ** financial assets, etc.

Investment income analysis refers to the net income per share of common stock, dividend payout ratio, price-to-earnings ratio, and price-to-earnings ratio.

Investment analysis based on indicators such as return on investment, assets per share, and net asset ratio. It includes both the sales revenue of the project and the assets (i.e., fixed assets at the end of the life of the project).

and liquidity). Investment can be divided into two categories: industrial investment and financial investment.

**There are two main methods of investment analysis: fundamental analysis and technical analysis.

Net income per common share is the ratio of the current year's earnings to the number of shares outstanding in common stock.

The dividend payout ratio is the percentage of dividends per share of common stock to net income per share.

The price-to-earnings ratio refers to the ratio of the price per ** to the net profit after tax per share, also known as the price-to-earnings ratio.

The return on investment is equal to the ratio of the company's investment income divided by the average investment amount.

Net assets per share is the ratio of net assets divided by the number of common shares outstanding.

The net asset ratio refers to the ratio of the sum price per share to the net value per share, also known as the price-to-book ratio.

The net asset ratio is to compare the stock price per share with the net value per share, indicating that the stock price is transferred in circulation at several times the net value per share, which can be used to evaluate whether the stock price is overvalued relative to the net value. The smaller the net asset ratio, the higher the investment value and the more supported the stock price. If you are cautious, the lower the value of the investment.

This indicator is also an important indicator for investors to judge the value of a certain investment.

Investment income is a profit and loss account.

Investment income is the net income from profits, dividends and bond interest obtained from foreign investment, minus investment losses. Strictly speaking, the so-called investment income refers to the monetary income with the project as the boundary.

The rental income and disposal gains and losses of investment properties measured under the fair value model recognized by enterprises in accordance with the investment real estate standards are also accounted for through this account.

The profit and loss on the disposal of trading financial assets, trading financial liabilities, and financial assets that can be realized for the enterprise are also accounted for in this account.

The investment income and disposal gains and losses obtained during the holding period of the held-to-maturity investment and the resale of financial assets of the enterprise are also accounted for in this account.

**The company's self-operated bid-ask spread income is also accounted for in this account.

Summary of the knowledge points in the chapters of the primary accounting title exam, I wish you easy to obtain evidence.

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Capital gains are when people sell ** (or other assets) for more than they originally paid for it.

Capitalgain means that people get more than they originally paid for when they sell their manuscripts. The Commercial Press's "English-Chinese** Investment Key Calling Dictionary" explains: Capital gains in English are:

capitalgain；capitalgainsyield。Also known as: Capital gains.

Investment instruments such as **, reciprocity**, etc.** and the selling spread. That is, the positive difference between the proceedsofdisposition and the adjusted cost basis (adjustedcostbasis) means that the investment product is sold ** higher than ****, that is, the actual income is obtained when it is realized.

No, the differences are as follows:

1. Different definitions.

1. Return on capital.

The rate of return on capital, also known as the rate of return on capital, refers to the ratio of the net profit (i.e., after-tax profits) of a business to the average capital (i.e., capital input and its capital premium).

2. Return on net assets.

Return on equity, also known as return on equity Return on equity Return on equity Return on equity Return on equity Return on equity Return on equity Profit on equity is the percentage of net profit to average shareholders' equity.

Second, the calculation method is different.

1. Return on net assets = after-tax profit Owner's equity.

Assuming that a company's annual after-tax profit is $200 million and its average annual net assets are $1.5 billion, its return on equity for the current year is 13 33% (i.e. ($200 million $1.5 billion) * 100%).

2. Return on capital = net profit 100% of average capital

Among them: for single-family enterprises, the net profit is the after-income tax profit of the enterprise; For group enterprises, net profit refers to the net profit after tax attributable to the parent company.

Average capital = [(Beginning of the year of paid-in capital + Number of beginning of the year of capital reserve) + (Number of year-end of paid-in capital + Number of end of year of capital reserve)] 2

The above capital reserve refers only to the capital premium (or equity premium).

After the implementation of the accounting standards, the capital reserve that can be used to form the fair value change income of financial assets shall be excluded in the calculation of the rate of return on capital.

After-tax ROC = Operating Income * (1 - Tax Rate) (Book Value of Debt + Book Value of Equity).

Third, the meaning is different.

1. Return on equity can measure the efficiency of the company's use of capital invested by shareholders. It compensates for the lack of after-tax earnings per share metric. For example.

After the company gives bonus shares to the original shareholders, the earnings per share will decline, thus creating an illusion among investors that the company's profitability has declined, but in fact, the company's profitability has not changed, and it is more appropriate to analyze the company's profitability with the net asset income ratio.

2. The rate of return on capital refers to the strong comprehensiveness of the company, and through analysis, we can find out the key problems of further rationalization of business activities of enterprises, and find out the main reasons that affect economic benefits and operating efficiency. It is conducive to prescribing the right medicine to improve the ability of capital gains.

Hello, it is a pleasure to serve you and give you the following answer: Social capital gains refer to the income obtained by enterprises when investing social capital. It is the ultimate return of the enterprise to invest in social capital, and orange scatter is the ultimate goal of the enterprise to invest in social capital.

The steps to resolve the issue of socially owned capital gains are as follows:1First of all, enterprises should analyze the market and understand the development trend of the market, so as to grasp the investment opportunities and grasp the investment risks.

2.Secondly, enterprises should formulate a reasonable investment strategy, determine the amount of investment, the time of investment, the direction of investment, etc., in order to grasp the investment opportunities. 3.

Thirdly, enterprises should establish an effective investment management system, regularly evaluate investments, and adjust investment strategies in a timely manner in order to grasp the risks of investment. 4.Finally, enterprises should establish an effective investment control mechanism and regularly supervise investments in order to grasp the risks of investment.

These are the practical steps to solve the problem of socially owned capital gains. Personal tips are that when investing in social capital, enterprises should accumulate investment opportunities and establish an effective investment management system and investment control mechanism in order to grasp the risks of investment and obtain higher returns on social capital.

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Problem description: The teacher talked about this today, but do you not know what it means?

How is it calculated?

Analysis: Return on capital.

It is also known as "return on equity" and "return on capital". It refers to the ratio of net profit (i.e. profit after tax) to owner's equity (i.e., net assets after total assets minus total liabilities). It is used to reflect the ability of an enterprise to use capital to obtain income.

It is also an evaluation index of the Ministry of Finance on the economic benefits of enterprises.

The higher the rate of return on capital, the better the economic benefits of the company's own investment, the less risk for investors, and it is worth investing and continuing to invest. Therefore, it is an important basis for investors and potential investors to make investment decisions. For business operators, if the rate of return on capital is higher than the cost of debt cost ratio, it is beneficial for investors to operate with moderate debt; Conversely, if the rate of return on capital is lower than the cost of debt cost ratio, excessive debt management will harm the interests of investors.

Return on capital = net profit after tax Owners' equity.

The internal rate of return on capital is the discount rate when the total present value of capital inflows is equal to the total present value of capital flows and the net present value is equal to zero. The internal rate of return of capital also indicates the ability to resist risks during the operation of the project, such as the yield of 10% on the inner shelter, which means that the maximum risk that can be borne by ants during the operation of the project is 10%.