Unit 3 (BTEC Business L3) C2 Types of income

Income is the money a business receives either through a lump sum investment or from the sale of its goods and ?

(a)  

Revenue income is loans, shares, owners capital, mortgages and debentures?

• True

• False

Loans, mortgages, shares, owners capital and debentures are all sources of ?

• Capital income

• Revenue income

Owners capital is when the owner funds the business through their own personal savings?

• False

• True dat

A share is a loan made out to the business by individuals and it is a source of income for a business. Repayable on a fixed date.

• True

• False

Revenue income is the ? that is flowing into the business via the day to day operation of the business

(a)  

There are 2 capital incomes and 2 revenue incomes - tick the ones that you think are capital incomes - take your time. Remember it's money that is INVESTED into the business.

• Loan from a bank

• Commission on a sale

• Money from the sale of shares

• Rent from a tenant

Capital income can be used to purchase assets for the business such as premises or machinery.

• True

• False

Tick the 2 options that you know are revenue income. Remember this is about money flowing in day to day.

• Owners investing their money in the business

• Mortgage on a commercial property

• Income from making a sale of a product or service

• Interest on cash in the bank