Income is the value of sold merchandise and services on the market that a business makes by working in a specific period. Depending on the nature of work of a business, there are several different names to describe different types of income; for instance: earned commission, earned charges, sales income, earned interest etc. They can be divided on regular and irregular incomes. Since income increase the equity capital, those increases will be recorded as claims in financial reports. Guidelines for recognition of income are based on International accounting standards, by which the income is recognized when it is earned, independently on whether the money was received or not. In most cases at the moment of delivery all conditions for recognizing income are met. After recognizing, income is recorded in the profit and loss accounts for the period they were made in. Income is closely related with receipts and output, because in management they are achieved through the same goal. Therefore, they need to be conceptually distinguished. Because of the fact that the goal of each business is to make as much profit as possible, it is necessary to be able to measure the financial result, so we can see if the company operates successfully. Measuring accomplished financial result is considered one of the most important accounting issues. Expenses are considered as the value of investment in a project, and the income is the value which that project earns, therefore, the difference between income and expenses presents a specific business result.