WorksheetsReview Sources of Income
Total questions: 38
Worksheet time: 20mins
Which of the following is an example of earned income?
Interest
Dividends
Wages
Lottery winnings
Which of the following is NOT an example of unearned income?
Rental income
Salary
Dividends
Lottery winnings
Earned income means _______; unearned income means _______. (Fill in the blanks)
working for money; money working for you
money working for you; working for money
saving money; spending money
investing money; earning a salary
Windfall income is defined as:
Money earned from a job
Unexpected money
Money from investments
Money from selling goods
Which of the following is an example of windfall income?
Salary
Tips
Gifts
Wages
Windfall income is a reliable source of income that students should plan their financial future around.
True
False
Earned income is taxed at a _______ rate than other types of income.
higher
lower
equal
variable
An employee is someone who works for someone else and receives _______/salary. (Fill in the blank)
wages
gifts
shares
prizes
What does it mean to be self-employed?
Works for themselves (freelance, gig work, small business)
Starts and runs their own business, assumes risks, seeks profit
Works for a company and receives a steady paycheck
Who is considered an entrepreneur/business owner?
Someone who works for a company
Someone who starts and runs their own business, assumes risks, seeks profit
Someone who works freelance jobs
Which of the following is a benefit of being an employee?
Independence
Steady paycheck, benefits (health insurance, retirement), less risk
Unlimited earning potential
Fill in the blank: Employees have their taxes withheld automatically using the ______ form.
W-2
1099
1040
I-9
Which of the following is a risk of being self-employed?
Steady paycheck
No guaranteed income, no benefits unless you buy them, must find clients
Layoffs possible
What is a benefit of being an entrepreneur?
Limited income
Unlimited earning potential, freedom to build your vision, chance to grow big
Steady paycheck
Fill in the blank: Self-employed individuals are responsible for paying their own taxes using the ______ form.
1099
W-2
1040EZ
W-4
Entrepreneurs may pay themselves as W-2 employees of their own company.
True
False
What is the definition of Human Capital?
Knowledge, skills, education, and connections increase earning potential.
Physical assets owned by a company such as buildings and machinery.
The total amount of money a person earns in their lifetime.
A company’s stock value on the open market.
Which of the following is the median income for someone with a Bachelor's degree?
$27k
$41k
$60k
$80k
Which of the following is the median income for someone with no high school diploma?
$27k
$41k
$60k
$80k
What is the definition of Unearned Income?
Money earned without active work—“your money works hard for you.”
Money received from selling goods or services.
Income earned from a full-time job.
Money earned by working overtime.
Which of the following is NOT an example of unearned income?
Interest
Dividends
Salary
Rental income
What is the definition of Portfolio Income?
Income from selling investments at a higher price (capital gains). Also includes dividends and interest.
Income earned from a regular job or business activities.
Income received as a gift or inheritance.
Income from renting out property or real estate.
Capital gains may be taxed at ______ rates than other unearned income. (Fill in the blank)
higher
lower
equal
variable
Which of the following is an example of portfolio income?
Selling stocks
Rental properties
Running a business
Wages from a job
Investments carry risk—you can lose money as well.
True
False
What is the definition of passive income? (Fill in the blank) Definition: Money earned regularly with ______ effort.
little
maximum
constant
no
Which of the following is NOT an example of passive income?
Rental properties
Intellectual property
Selling stocks
Businesses run by others
Passive income often receives favorable tax treatment.
True
False
What is Earned Income?
A) A tax-advantaged retirement account employers offer to help their employees.
B) Money made from working for someone based on your time, effort, and skill.
C) A cash reserve specifically set aside for unplanned expenses or financial emergencies.
D) A prediction of how likely you are to pay a loan back on time based on your credit history.
A document that comes with your paycheck, showing how much you were paid and how much was withheld for taxes.
budget
transfer
pay stub
net pay
The form you fill out when you get a job to verify you can work is a
W4
I-9
____ employees are paid a fixed amount each pay period.
stock option
business partners
full time
salary
All the money you earn before taxes are deducted.
net income
gross income
taxes
EFT
What is net income?
Total earnings from all sources
Income before taxes
Income after taxes and deductions
Only income from investments
Money you make from working such as salary, tips, commissions, wages, and self-employment.
Unearned Income
Gross Pay
Net Pay
Earned Income
Which of the following is not a source of income?
Salary
Dividends from stocks
Loans
Rental income
