ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income is money that is earned, while expenses are spending money
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Income is saving money, while expenses are investing money
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Income is spending money, while expenses are earning money
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Income is earning money, while expenses are saving money
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Detailed explanation-1: -The difference between income and expenses is simple: income is the money your business takes in and expenses are what it spends money on. Your net income is generally your revenue, or all the money coming into your business, minus all of your expenses. If that number is positive, your business is making a profit.
Detailed explanation-2: -Also referred to as “net income” or “net profit, ” income is the total amount of earnings a company makes minus expenses. It is calculated by subtracting the costs of doing business, such as depreciation, interest, taxes, and other expenses from revenue.
Detailed explanation-3: -Also called net profit or net earnings, net income reflects how much your practice actually earned or lost during the reporting period. This is essentially amount of money remaining after all expenses are subtracted from total revenue.
Detailed explanation-4: -Net income reflects the total residual income that remains after accounting for all cash flows, both positive and negative. In other words, from revenue, which is called the top-line number, all income, expenses, and costs are deducted to arrive at net income.
Detailed explanation-5: -Income is the income proceeds generated by a non-trading foundation in a monetary year, while expenditure means active costs brought about.