4 Characteristics of capital income.

Capital income is income generated by an asset over time, rather than from work done using the asset, according to Investopedia. If a farmer buys land for a certain amount of money and sells it at a profit after one year, the difference in the prices is capital income

Income is the increase in economic benefits in the form of the following:

  • Inflows
  • Increases of assets that lead to increases of equity other than contributions by the shareholders in their capacity as a shareholder.
  • Decreases of liabilities that lead to increases of equity other than distributions to the shareholders in their capacity as shareholders.

Characteristics of Revenue Income:

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