The Definition of Income and Wealth

Wealth consists of those items of economic value that an individual owns, while income is an inflow of items of economic value.

                wealth = assets − liabilities

Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.

A liability is  an obligation  arising from past transactions , the settlement of which may result in expenses or transfer of assets.

The relation between wealth, income, and expenses is:

               change of wealth = income − expense