ANNUAL EARNING Meaning and
Definition
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Annual earnings refer to the total amount of income an individual or a business earns over the course of one year. It is a financial metric commonly used to evaluate the profitability and performance of a company or to assess an individual's income.
For a business, annual earnings represent the sum of all revenues generated from the sale of products or services during a specific fiscal year, after deducting all costs and expenses. This includes gross revenue from sales, as well as any additional income from investments, rent, or other sources. Annual earnings are a critical measure of a company's financial health and are often used by investors and stakeholders to gauge the company's profitability and potential growth.
In the context of individual earnings, annual earnings encompass the total income received by an individual from various sources, including wages, salaries, bonuses, commissions, self-employment income, rental income, and investment returns, among others. It provides an overview of an individual's financial standing and is a primary consideration for assessing creditworthiness, determining tax liability, and planning personal finances.
Annual earnings can be provided as a gross amount before taxes or as net earnings after deducting taxes and other relevant deductions. It is an essential figure for individuals and businesses alike, serving as a key indicator of financial stability, growth potential, and overall prosperity.
Common Misspellings for ANNUAL EARNING
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Etymology of ANNUAL EARNING
The word "annual earning" is not a term with a specific etymology, as it is a combination of two separate words: "annual" and "earning".
"Annual" comes from the Latin word "annus", meaning "year", and it entered English through the Old French word "annuel" in the 14th century. The term highlights something that occurs, is done, or is calculated once a year.
"Earning" is derived from the verb "earn", which originated in Old English as "gearnian" and meant "to deserve, to merit, or to acquire through work or effort". Over time, it evolved to specifically refer to gaining or receiving money or income through employment or investment.
Therefore, when combined, "annual earning" refers to the amount of money or income earned within a year.
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