Income Source of Habib and Amal
What are the income sources of Habib and Amal?
Which of the following is true?
a. Habib's income is his salary; Amal's is personal interest income.
b. Both Habib and Amal receive proprietor's income.
c. Both Habib and Amal receive wage or salary income.
d. Habib's income is his salary, and Amal's income is proprietor's income.
e. Habib's income is his personal interest income; Amal's is wages.
Answer:
The correct statement is c. Both Habib and Amal receive wage or salary income.
In the given scenario, Habib receives a salary of $40,000 per year for teaching mathematics at Camford University. This salary represents wage or salary income.
Amal, on the other hand, works as a self-employed computer programmer and charges $40 per hour. As a self-employed individual, Amal's income would be classified as wage or salary income since it is earned through her own work and effort.
Therefore, both Habib and Amal receive wage or salary income based on their respective employment situations.