ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Gross income and net income are two terms commonly used by businesses to describe profit. Both terms can also be used to explain how much money a household is making or taking home. For an individual, net income is the total residual amount of income remaining after all personal expenses have been paid for.

Detailed explanation-2: -Gross income is the total revenue derived from sales of goods and services in a specified period. Net income is the profit left after deducting total business expenses from gross income. Learn which business expenses you should track.

Detailed explanation-3: -Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income.

Detailed explanation-4: -Gross income is your salary or wages before deductions like taxes and retirement plan contributions are taken out. Net income is what you’re left with after those deductions. On a credit application, you’ll use the gross figure.

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