Income
Income
Income (pronounced: /ˈɪnkʌm/) is a term used in economics and finance to refer to the money or other forms of payment that an individual or entity receives in exchange for providing goods, services, or through investing capital.
Etymology
The term "income" is derived from the Latin word incomen, meaning "coming in". In the 14th century, it was used to refer to the money brought into a household to support the family's living expenses.
Types of Income
There are several types of income, including but not limited to:
- Earned income: This is the income that an individual earns from their work or business. It includes wages, salaries, tips, and net earnings from self-employment.
- Unearned income: This is the income that an individual receives without having to work for it. It includes interest from savings, dividends from investments, and rental income.
- Passive income: This is the income that an individual earns from sources where they are not actively involved. It includes income from rental properties, royalties, and businesses in which the individual is not actively involved.
- Portfolio income: This is the income that an individual earns from their investments, such as stocks, bonds, and mutual funds.
Related Terms
- Gross income: This is the total income earned by an individual or a business before any deductions or taxes.
- Net income: This is the income that remains after all deductions and taxes have been subtracted from the gross income.
- Disposable income: This is the income that an individual or household has available to spend or save after taxes have been paid.
- Income tax: This is a tax imposed by the government on the income earned by individuals and businesses.
- Income statement: This is a financial statement that shows how much income a business has earned over a specific period of time and the costs and expenses associated with earning that income.
External links
- Medical encyclopedia article on Income
- Wikipedia's article - Income
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