The consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.
Income
The sum of all wages , salaries, profits, interests payments, rents, and other forms of earning received.
Income
Types of Income:
Earned Income
Passive Income
Portfolio Income
Money derived from paid work.
Earned Income
Income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.
Passive income
Income from investments, dividends, interest and capital gains.
Portfolio Income
Tax imposed on individuals or entities (taxpayers) that varies with their respective income or profits (taxable income).
income tax
Computed as the product of a tax rate times taxable income. The tax rate may increase as taxable income increases (referred to as ________ or _________).
Income Tax, graduated or progressive rates
Total revenue received before any deductions or allowances, as for rent, cost of goods sold, taxes, etc.
Gross Income
Refers to the base upon which an income tax system imposes tax. Generally, it includes some or all items of income and is reduced by expenses and other deductions.
Taxable income
(T/F) The amounts included as income, expenses, and other deductions vary by country or system.
