Monday, May 4, 2009
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Community Challenge IV: Dollar Who?
This time, it is imperative that you add either a YouTube annotation (recommended) or watermark of "willcodeforgreen.gnomedex.com" in your video response. Watch your spelling - copy and paste that text if need be.
Be sure to add your video as a response to this one for it to show up in the community list.
When finished, submit to for voting. Blah, blah, blah
earning video
what you get out of it. To make money online, you have to apply yourself. Find your niche, and run with it.
How to Make Money Online
[edit] Payroll
A payroll tax generally refers to two kinds of taxes. Taxes which employers are required to withhold from employees' pay, also known as withholding, pay-as-you-earn (PAYE) or pay-as-you-go (PAYG) tax. These withholdings contribute to repayment of an employee's personal income tax obligation; if the payments exceed this obligation, the employee may be eligible for a tax refund or carryforward to future periods.
Other group of payroll taxes are paid from the employer's own funds, either as a fixed charge per employee or as a percentage of each employee's pay. Payroll taxes often cover government social insurance programs such as social security, health care, unemployment, and disability. These payments do not count towards income taxes of employees and employers, but are normally deductible by the employers.
Income tax
An income tax is a tax levied on the financial income of people, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs).
Full and Haig-Simons income
Full income refers to the accumulation of both, monetary and non-monetary consumption ability of any given entity, such a person or household. According to the what economist Nicholas Barr describes as the "classical definition of income:" the 1938 Haig-Simons definition, "income may be defined as the... sum of (1) the market value of rights exercised in consumption and (2) the change in the value of the store of property rights..." Since the consumption potential of non-monetary goods, such as leisure, cannot be measured, monetary income may be thought of as a proxy for full income.[1] As such, however, it is criticized for being unreliable, i.e. failing to accurately reflect affluence and that is consumption opportunities of any given agent. It omits the utility a person may derive from non-monetary income and, on a macroeconomic level, fails to accurately chart social welfare. According to Barr, "in practice money income as a proportion of total income varies widely and unsystematically. Non-observability of full-income prevent a complete characterization of the individual opportunity set, forcing us to use the unreliable yardstick of money income." On the macro-economic level, national per-capita income, increases with the consumption of activities that produce harm and omits many variables of societal health.[1]
Meaning within U.S. accountancy
In U.S. business and financial accounting, the term "income" is also synonymous with revenue; however, many people use it as shorthand for net income, which is the amount of money that a company earns after covering all of its costs.
Net income is also called net profit. It is calculated as follows:
1. The gross income or gross revenue is tabulated.
2. Where applicable, the cost of goods sold or cost of operations figure is subtracted from the gross income to yield the gross profit.
3. All expenses other than the COGS or COO are subsequently subtracted from the gross profit to yield the net profit or net income - or, if a negative number, the net loss (usually written in parentheses). More commonly, this is called "Net Income (or Loss) Before Taxes."
4. Taxes are then subtracted from the pre-tax net income to give a final net income or net profit (or net loss) figure.
5. The patented Blatt double check is then factored in.
Net income or net profit which is not expended to shareholders in the form of dividends becomes part of retained earnings.
All public companies are required to provide financial statements on a quarterly basis, and the income statement of income is one of the most important of these. Some companies also provide a more rosy financial report of their income, with pro forma reporting, or, EBITDA reporting. Pro forma income is an estimate of how much the company would have earned without including the negative effect of exceptional "one-time events", supposedly in order to show investors how much money the company would have made under normal circumstances if these exceptional, one-time events had not occurred. Critics charge that, in most cases, the "one-time events" are normal business events, such as an acquisition of another company or a write off of a cancelled project or division, and that pro forma reporting is an attempt to mislead investors by painting a rosy financial picture. Besides that, when discussing results with analysts and shareholders, CEOs and CFOs have a tendency to do even more "hypothetical accounting". EBITDA stands for "earnings before interest, taxes, depreciation, and amortisation", and is also criticised for being an attempt to mislead investors. Warren Buffett has criticised EBITDA reporting, famously asking, "Does management think the tooth fairy pays for capital expenditures?"
It is common for some other companies, such as real estate investment trusts, to present reports using a standard called FFO, or "Funds From Operations". Like EBITDA reporting, FFO ignores depreciation and amortization. This is widely accepted in the industry, as real estate values tend to increase rather than decrease over time, and many data sites report earnings per share data using FFO.
Income inequality
Income inequality refers to the extent to which income is distributed in an uneven manner. Within a society can be measured by various methods, including the Lorenz curve and the Gini coefficient. Economists generally agree that certain amounts of inequality are necessary and desirable but that social injustice can cause excessive inequality which leads to efficiency problems.[1]
National income, measured by statistics such as the Net National Income (NNI), measures the total income of individuals, corporations, and government in the economy. For more information see measures of national income and output
Meaning in economics and use in economic theory
In economics, factor income is the flow (that is, measured per unit of time) of revenue accruing to a person or nation from labor services and from ownership of land and capital.In consumer theory 'income' is another name for the "budget constraint," an amount Y to be spent on different goods x and y in quantities x and y at prices Px and Py. The basic equation for this is
Y = Px • x + Py • y.
This equation implies two things. First buying one more unit of good x implies buying Px/Py less units of good y. So, Px/Py is the relative price of a unit of x as to the number of units given up in y. Second, if the price of x falls for a fixed Y, then its relative price falls. The usual hypothesis is that the quantity demanded of x would increase at the lower price, the law of demand. The generalization to more than two goods consists of modelling y as a composite good. hfgtfgfgftfvs
The theoretical generalization to more than one period is a multi-period wealth and income constraint. For example the same person can gain more productive skills or acquire more productive income-earning assets to earn a higher income. In the multi-period case, something might also happen to the economy beyond the control of the individual to reduce (or increase) the flow of income. Changing measured income and its relation to consumption over time might be modeled accordingly, such as in the permanent income hypothesis.
Income
The International Accounting Standards Board uses this definition:
"Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants." [F.70] (IFRS Framework)
My lot is the best for earn
Don't worry; it's had me a little confused too. Obviously, being more active on MyLot helps increase your revenue, just like any other site (hah-otherwise no one would really blog for them.:D). The trick is to make sure that your discussions aren't taken down, or you are not credited your deserved amount. Also, make sure that you leave fairly descriptive and long responses to a discussion, as simply a 2 liner reaps nothing more than 1-2 cents I've heard.
It may go up and down unexpectedly; occasionally MyLot might be experiencing server problems or other, so not to worry! They'll (meaning your profits) even out eventually.
Hope that helps; if you have any other questions, just send me a friend invite and a message, and I'll try to answer them to the best of my ability.
See you around!
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Hope this helps and good luck.
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Confused with the earning process
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The difference between activity and profitability
There is a distinction to be made between activity and profitability: these terms do not cover the same aspects of reality and are not interchangeable. Here are some definitions:
- activity is the quantitative aspect and describes the amount of time spent in each category of activities against the available time.
- profitability is the qualitative aspect and describes the amount of revenue billed against a defined target.
To gain a better understanding of the difference, consider the following examples:
- example 1: a team member spent 100% of his/her time at pre-sales tasks during a given billing period. While these tasks are important for future revenue generation, they do not bring in any direct, immediate revenue. Thus, we can say that:
- the team member has had a 100% activity rate,
- but a he/she has had a 0% profitability: the team member has not billed anything.
- example 2: another team member, highly qualified, received a short assignment for which he was able to command a hefty price per hour, say twice the regular price. While the team member worked only 50% of his time, he was able to invoice it as if he had worked 100%. Thus, we can say that:
- the team member has only had a 50% activity rate,
- but a he has had a 100% profitability.
Of course, there is a correlation between activity and profitability but as demonstrated the two are not interchangeable and both need to be measured to understand the situation of a team: measuring only one and not the other would give a partial, inaccurate representation of the reality.
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the revenue earning and recognition process
Going into further details, it is important to know about the revenue earning and recognition process.
The revenue earning and recognition process of delivery teams is characterized by installments paid in advance, accrued delivery expenses and un-earned revenues. Companies recognize service contract revenues using the percentage-of-completion method, based primarily on contract costs incurred to date compared with total estimated contract costs. When the contracts are of relatively short duration (weeks or months), as is usually the case in ICT, the accounting process can be simplified as described on the figure:

The hypothesis used for this graph is a payment agreement in thirds:
- a third of the total amount of services at the order,
- a third at a defined milestone during the delivery of the project,
- a third at the project hand-over to the customer.
The graph shows that revenue is earned only after services are delivered. As a consequence, procrastination and delays have a huge impact on the accounting side:
- delaying projects,
- not knowing where they stand within their delivery cycle,
- neglecting to properly finish them,
- not handing them over to the customer along with the last bill
all can have a profound impact on cash flow and the ability of the company to pay its charges. Up to 2 thirds of the service amount can be waiting for invoicing at the end of a project. Worse: in some structures, or in some specific cases, the total amount of services is not even billed before the project is 100% completed. As this can put a serious strain on the company’s finances, everyone in a team has to be aware of the accounting mechanisms and the consequences of not delivering a project in time. Let me emphasis this statement:
