Different Types Of Income

Question 1

Earned income

Answer 1

Income produced through trading time and expertise for money

-Active Income

Question 2

Profit Income

Answer 2

Produced through product sales

• two types: individual and business
• can be both active and passive income

Question 3

Interest Income

Answer 3

Collecting interest for borrowed money

-passive income

Question 4

Dividend Income

Answer 4

Income from stocks that shareholders collect

Question 5

Rental Income

Answer 5

Any income produced by lending a property for money

Question 6

Residual and Royalty Income

Answer 6

Income produced by letting other people use your ideas or properties to make money

Question 7

Capital Gains

Answer 7

Acquired when an asset appreciated in value is sold