"A Short Review of what Income is"

 What is Income?

Income is money that an individual or business receives in exchange for providing labor, producing a good or service or investing capital. Individuals typically earn income through wages or salary, while businesses earn income from selling goods or services above their cost of production.

Net Income is the difference between revenue and the cost or expenses incurred by a business in a particular accounting period. It is also known as the profit of a business. Income leads to an increase in the value of assets in a business.

Some Types of Income

1)Wages;

This is income you earn from a job, where you are paid an hourly rate to complete set task

2) Salary; Similar to wages, this is money you earn from a job.

3) Commission.

4) Interest.

5)    Selling something you create or own.

6) Investments.

7) Gifts.

8) Allowance/Pocket Money.

What are the sources of income?

Hence, rent, wages, interest and profit comprise the income of household. The firms use the factors of production and produce goods and services which are sold to the household sectors. The money that the household sectors pay for these goods and services comprises the income of the firms sector.