Income

• What is capital income?

  Money used to set up a business - long-term investment
• Examples of capital income

  • Loans
  • Debentures (Type of bond issued by large companies to raise money)
  • Owner's capital
  • Shares
  • Mortgage
• What is revenue income?

  Income received by the business on sales of its goods/services.
• Examples of revenue income

  • Cash sales
  • Discount received (Business pays reduced price for goods/services)
  • Interest received (Money earned on savings or lending)
  • Credit sales
  • Commission received
  • Rent received (Business rents out a property it owns)