Glossary: I

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Income Statement

An income statement, or profit and loss statement, reports a business's revenue and expenses over a period, ending in ne…

Incorporation

Incorporation is the legal process of forming a corporation, a separate legal entity from its owners, giving limited lia…

Input Tax Credit (ITC)

An input tax credit is the GST/HST a registered business pays on its purchases, which it claims back so that it only rem…

Instalment

A tax instalment is a periodic prepayment of income tax made through the year, required when you owe more than a set thr…

Inventory

Inventory is the goods a business holds for sale, or the materials it will turn into products, recorded as a current ass…

Invoice

An invoice is a document a seller issues to a buyer requesting payment for goods or services, listing amounts, terms, an…

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