Which type of income is NOT classified as unearned income?

Prepare for the FBLA Securities and Investments Exam with questions, flashcards, and hints to enhance your knowledge and boost your confidence. Excel on your exam!

When considering the classification of income, unearned income refers to earnings that are not directly tied to an individual's labor or work. This includes income derived from investments and other sources where the individual does not actively engage in business or provide a service.

Salary from a job is categorized as earned income because it is compensation received in exchange for the work performed. This type of income is directly related to the individual's time and effort put into their job.

On the other hand, interest from savings accounts, dividends from stocks, and rent from property are all forms of unearned income. Interest accumulates based on money that is deposited and does not require active input from the depositor. Dividends are payments made to shareholders from the profits of a company, and again, these payments do not rely on the shareholder's work. Rent from property is income earned from leasing out real estate, which does not involve direct labor by the property owner after the initial effort to acquire or maintain the property.

Thus, salary from a job stands out clearly as earned income, making it the correct answer to the question of which type of income is not classified as unearned income.

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