Income and Expenditure
Assessment Outcomes
1.1 Understand different sources of income and expenditure.
What is Income?
Income refers to the money or earnings you receive regularly, typically from sources like your job, investments, business, or other financial activities. It’s the money coming into your bank account or wallet.
There are various types of income, including:
- Earned Income: Money earned through employment, such as wages or salary.
- Passive Income: Earnings from investments, like dividends, rental income, or interest.
- Business Income: Money generated from owning or running a business.
- Rental Income: Profits from renting out property or assets.
- Investment Income: Gains from investments in stocks, bonds, or mutual funds.
- Retirement Income: Payments from pensions.
- Dividend Income: Payments from owning shares in companies.
- Royalty Income: Earnings from the use of intellectual property, like books or music.
- Capital Gains: Profit from the sale of assets or investments.
- Gift or Inheritance Income: Money received through gifts or inheritance.
- Child Support: Financial support from a former spouse or parent.
- Side Gig or Freelance Income: Earnings from part-time jobs or freelance work.
- Rental Property Income: Profits from owning and renting out real estate.
- Annuity Income: Regular payments from annuities or insurance contracts.
- Commission Income: Earnings based on sales or services rendered.
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