| A | B |
|---|
| Expense | Money spent |
| Gross income | An individual’s income earned as salary or wages before taxes and other deductions |
| Investment asset | Financial assets purchased with the hope that they will generate income and appreciate in value to make it possible to sell at a higher price in the future |
| Liability | A debt or obligation owed to others |
| Net income | Take home pay |
| Net loss | When expenses are greater than income |
| Savings | The portion of current income not spent on consumption |
| Spending plan | An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time |
