Which of the following options represents the total income earned by individuals from all the sources before the deduction of personal income taxes?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Gross income.
Gross income refers to the total revenue earned by individuals from all sources before the deduction of personal income taxes. This includes wages, salaries, bonuses, dividends, rent, interest, and any other form of income. Individuals receive the total amount of money, but they are not yet subjected to any tax deductions.