What is meant by below-the-line in accounting?
What Puts Something “Below the Line”? An item is listed on the financial statement as below the line when it is excluded from the gross profit, and, therefore, does not affect the profit or loss from normal operations for that accounting period.
What is below-the-line and above the line in accounting?
Key Takeaways. Above-the-line costs include all costs above the gross profit, while below-the-line costs include costs below gross profit. Above-the-line costs are often referred to as the cost of goods sold (COGS), while below-the-line is operating and interest expenses and taxes.
What is below-the-line items in BOP accounts?
Below the line are operating expenses, interest, and taxes. The balance of payments (B.O.P) of a country is the difference between all money flowing into the country in a particular period of time and the outflow of money to the rest of the world.
What is below-the-line in budgeting?
Below the line in production refers to, in a budgetary sense, any production costs that are not “above the line.” This can include film crew salary, publicity, music rights, and cutting together a trailer.
What does under the line mean?
adjective. (also below the line); (abbreviation BTL) MARKETING. relating to advertising, such as trade shows and direct mail, which communicate more directly with customers and are less expensive than television and newspaper advertising: below-the-line marketing.
What are below the line adjustments?
Below-the-line deductions include any deduction reported on a line that comes after the AGI calculation on a return. While both deductions ultimately reduce your taxable income, some can have a more favorable impact on your tax bill than others. In most cases, above-the-line deductions are the better choice.
What is the difference between above the line and below the line?
Difference Between Above the line vs Below the line. Above the line or ATL consists of activities (advertising) that are not targeted at a specific customer and covers a wider territory. Below the Line or BTL advertising consists of activities that create a real emotional connection with the targeted customer.
Is depreciation above or below the line?
As stated earlier, in most cases, depreciation and amortization are treated as separate line items on the income statement. Depreciation is typically used with fixed assets or tangible assets, such as property, plant, and equipment (PP&E).
Why accommodating items are known as Below the line items?
On the other hand, accommodating items are a consequence of autonomous items and are undertaken to rectify the disequilibrium of autonomous items. Hence they are recorded after the BOP surplus or deficit is calculated with the help of autonomous items. Hence, they are also called ‘below the line items’ of BOP.
What are below the line comments?
Below-the-line comments are comments posted below an online article or social media post.
What does a line under a number mean?
A vinculum (Latin for, “fetter”, “chain”, or “tie”) is a horizontal line used in mathematical notation for various purposes. It may be placed as an overline (or underline) over (or under) a mathematical expression to indicate that the expression is to be considered grouped together.
What is below the line?
Below the Line Definition. The below the line definition is income or expense in accounting which have no noticeable effect on company profits in the current period; however, it is an unofficial term.
What is below the line cost?
Below-the-line costs are all operating and interest expenses and taxes . Above-the-line costs are those above the gross profit line, while below-the-line costs include costs below gross profit, namely operating expenses.
What is the formula for income statement?
The income statement shows us how our business is doing, and it shows us financial results over a period of time. The basic format of an income statement is revenues on top, expenses listed next, and net income calculated on the bottom. The simple formula for the income statement is: Revenues – Expenses = Net Income.