Sources Of Income

Question 1

What is the definition of income?

Answer 1

Income is the money received on a regular basis for work or through investments.

Question 2

True or False: All sources of income are taxable.

Answer 2

True

Question 3

Fill in the blank: Income generated from employment is known as __________.

Answer 3

earned income

Question 4

What are the two main categories of income?

Answer 4

Active income and passive income

Question 5

Multiple Choice: Which of the following is considered passive income? A) Salary B) Rental income C) Commission

Answer 5

B) Rental income

Question 6

What is a common source of passive income?

Answer 6

Investments such as stocks, bonds, and real estate

Question 7

True or False: Dividends from stocks are a form of earned income.

Answer 7

False

Question 8

What is the difference between gross income and net income?

Answer 8

Gross income is the total income before taxes and deductions, while net income is the income after taxes and deductions.

Question 9

Fill in the blank: Income from self-employment is classified as __________.

Answer 9

self-employment income

Question 10

Multiple Choice: Which of the following is NOT a source of income? A) Salary B) Interest from savings C) Debt

Answer 10

C) Debt

Question 11

What is capital gains income?

Answer 11

Income earned from the sale of an asset for more than its purchase price.

Question 12

True or False: Interest earned on a savings account is considered passive income.

Answer 12

True

Question 13

What are royalties?

Answer 13

Payments made to a creator for the use of their intellectual property.

Question 14

Multiple Choice: Which of the following is a source of investment income? A) Salary B) Rental payments C) Bonuses

Answer 14

B) Rental payments

Question 15

Fill in the blank: Income from government benefits is known as __________.

Answer 15

transfer payments

Question 16

What is the term for income received from investments in stocks?

Answer 16

Investment income

Question 17

True or False: Freelancers are considered to have earned income.

Answer 17

True

Question 18

What type of income is derived from a business or profession?

Answer 18

Earned income

Question 19

Multiple Choice: Which of the following is a type of passive income? A) Commission B) Rental income C) Overtime pay

Answer 19

B) Rental income

Question 20

Fill in the blank: __________ income refers to money received for work or services provided.

Answer 20

Earned

Question 21

What is an example of unearned income?

Answer 21

Interest, dividends, or capital gains

Question 22

True or False: Income from a side hustle is considered active income.

Answer 22

True

Question 23

What is the primary source of income for most individuals?

Answer 23

Wages or salary from employment

Question 24

Fill in the blank: __________ is income that comes from selling goods or services.

Answer 24

Revenue

Question 25

What are the benefits of diversifying income sources?

Answer 25

Reduces financial risk and increases financial stability.

Question 26

Multiple Choice: Which of the following is a source of passive income? A) Salary B) Rental property C) Freelance work

Answer 26

B) Rental property

Question 27

What does it mean to have multiple streams of income?

Answer 27

Having various sources of income to increase overall earnings.

Question 28

True or False: All income types contribute to an individual's overall financial health.

Answer 28

True

Question 29

What is a common characteristic of passive income?

Answer 29

It requires little to no ongoing effort to maintain.

Question 30

Fill in the blank: __________ income is derived from work that requires effort and time.

Answer 30

Active

Question 31

What is the main advantage of passive income?

Answer 31

It allows for earning money with minimal effort after the initial setup.