What is meant by notional income?

Notional Income. The term is often associated with income from rental property. In India, for example, one must pay taxes on the amount of rent one might reasonably expect to earn in a year, whether or not one actually earns it. This fictional money is notional income because one must still pay income tax on it.

Also asked, what do you mean by notional profit?

Notional Profit. A contract usually takes several years to get itself completed. If the profit on such contracts is recorded only after their completion, then wide fluctuations may be noted in the profit figures of contractors from year to year.

What is the notional principal?

The notional principal amount, in an interest rate swap, is the predetermined dollar amounts on which the exchanged interest payments are based. The notional principal never changes hands in the transaction, which is why it is considered notional, or theoretical.

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What is the purpose of chest tube water seal?

The middle chamber of a traditional chest drainage system is the water seal . The main purpose of the water seal is to allow air to exit from the pleural space on exhalation and prevent air from entering the pleural cavity or mediastinum on inhalation.

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