12
QuizMultiple Choice

Financial Responsibility — Unit test

Question 12 • Personal Finance - EL3403

What is the definition of gross income?

Answer
A
amount of income saved per year
B
amount earned before deductions
C
amount of tax deducted from income
D
amount received after deductions

Explanation

Gross income is the total amount earned before taxes or other deductions are taken out. So the correct choice is “amount earned before deductions.” The amount received after deductions is net income, not gross income.

AI-written and checked against the verified answer.

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