ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Revenue (also referred to as Sales or Income) forms the beginning of a company’s income statement and is often considered the “Top Line” of a business.

Detailed explanation-2: -Earned income is the money a person receives due to working or business activities, such as earning a salary, self-employment income, or certain government benefits. This is distinct from unearned income, such as receiving an inheritance, capital gains, or qualified dividends.

Detailed explanation-3: -Earned income includes wages, salary, tips and commissions. Passive or unearned income could come from rental properties, royalties and limited partnerships. Portfolio or investment income includes interest, dividends and capital gains on investments.

Detailed explanation-4: -Income is often considered a synonym for revenue since both terms refer to positive cash flow; however, in a financial context, the term income almost always refers to the bottom line or net income since it represents the total amount of earnings remaining after accounting for all expenses and additional income.

Detailed explanation-5: -Active income. If you have a job and receive a paycheck, you make your money through active or earned income . Portfolio income. Portfolio income comes from investments such as dividends, interest, royalties and capital gains. Passive income. 03-Feb-2023