Income & Expenses

Question 1

Income

Answer 1

Money received, especially on a regular basis, for work or through investments.

Question 2

Types of Income for Individuals

Answer 2

Salary, shares, side hustles, wage, rental income, government payments (pension), owning a business, interest on savings etc.

Question 3

Types of Income for Businesses

Answer 3

Shares, sponsorships, clients, selling/providing goods/services, capital gains on sale of assets, interest from investments.

Question 4

Salary

Answer 4

Based on one year’s work and is usually paid in equal weekly, fortnightly or monthly payments.

Question 5

Wage

Answer 5

Usually a weekly or fortnightly payment based on the number of hours of work completed.

Question 6

Commission

Answer 6

Earned when employees are paid a percentage of the value of goods that they sell.

Question 7

Expenses

Answer 7

Generally, expenses are the costs incurred in or required for something. In a business, expenses refers to the money spent and the costs incurred in pursuing revenue.

Question 8

Fixed Expenses

Answer 8

Expenses that are the same for each period, or occur at the same time in the budget (e.g., rent is the same every month). Typically remain the same cost. Can be planned for.

Question 9

Variable Expenses

Answer 9

Vary across the course of the budget (e.g., food, toys etc.)