What term describes money earned from work or investments?

Study for the EverFi Financial Literacy for High School Test. Prepare with questions and answers, detailed explanations, and comprehensive resources to ensure success!

The term "income" is used to broadly describe money earned from various sources, including work, investments, and other forms of revenue generation. Income encompasses a wide array of earnings, such as wages, salaries, dividends from investments, rental income, and more. This makes it a comprehensive term that applies to individuals and businesses alike regarding the money they receive during a certain period.

While "salary" refers specifically to a fixed regular payment typically given to employees for their work, it does not account for earnings from other sources. "Revenue" generally describes the total money generated by a business from its normal operations, which is different from an individual’s earnings. "Profit" defines the financial gain after subtracting expenses from revenue, relating more specifically to business contexts than personal income. Thus, income is the most fitting term to describe money earned from both work and investments.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy