Question

difference between mixed income and undistributed profit

Answer 1

National income or the gross national income is the total income earned by all residents and enterprises of a country over a specific period. You can also define national income as the total value of all goods and services produced over a specific period of time. Now, there are several methods of calculating national income.

The three most common methods are the value-added method, the income method, and the expenditure method. The value-added method focuses on the value added to a product at each stage of its production.

Next, the income method focuses on the income received on the factors of production such as land and labor. And finally, the expenditure method focuses on the various types of expenditure based on consumption and investment. Let’s look at the income and expenditure methods in detail.

Answer 2

Explanation:

Mixed Income

Mixed income is the balancing item of the generation of income account of unincorporated enterprises in the households sector, corresponding to remuneration for work carried out by the owner and members of his family and including his profits as entrepreneur.

Undistributed Profit

Profit earned by an organization but not distributed to its shareholders by way of dividends. Such sums are available for later distribution but are frequently used by companies to finance their activities.