Form 1 Income and Expenditure

What is income?

• Money spent on goods and services

• Money earned or received in exchange for labour

• Money borrowed from a bank

• Money saved for future use

What is expenditure?

• Money used for savings

• Money earned from a job

• Money spent on goods and services

• Money given as a gift

Which of the following is an example of expenditure?

• Getting a weekly paycheck

• Depositing money into a savings account

• Buying groceries for the month

• Receiving a bonus from your employer

If a person's income is higher than their expenditure, they will have:

• A budget deficit

• A surplus

• A balanced budget

• More debt

Why is it important to balance income and expenditure?

• To ensure financial stability and avoid debt

• To spend as much as possible

• To only focus on earning income

• To avoid paying taxes

Which of the following is an example of constant income?

• A farmer selling crops in harvest season

• A teacher earning a monthly salary

• A musician getting paid for a concert

• A store selling Christmas decorations

A seasonal income is:

• Earned at regular intervals throughout the year

• Earned during specific periods based on demand

• A fixed amount of money received every month

• The money left after taxes and expenses

Which of the following is an example of fluctuating income?

• A person working for a fixed monthly salary

• A taxi driver earning different amounts each day

• A government worker receiving a steady paycheck

• A person earning interest from a savings account

Which type of income would a freelance photographer most likely have?

Freelance photographer: someone who takes pictures for different people or companies without working for just one boss.

• Constant

• Seasonal

• Fluctuating

• Fixed

Which of the following would be an example of seasonal income?

Select all the correct responses.

• A nurse working in a hospital

• A tour guide during summer vacations

• A bus driver transporting students daily

• An accountant working in a bank