Income Measurement refers to the process of determining the financial performance of a business over a specific period. It involves calculating the total revenue generated from sales and other sources, then subtracting the total expenses incurred. This helps businesses understand their profitability and make informed decisions. Accurate Income Measurement is essential for stakeholders, including investors and management, as it provides insights into the company's financial health. Common methods include the accrual basis and cash basis of accounting, each offering different perspectives on income and expenses, depending on when transactions are recognized.