The Definition of Income and Wealth

wealthymatters.comWealth 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.

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

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