Question

what do you understand by capital income​

Answer 1

Answer:

Capital income is the income generated by an asset over time, rather than from work done using the asset, according to Investopedia.

Example- If a farmer buys a land for a certain amount of money and sells it at a profit after one year, the difference in the prices is capital income.

Answer 2

This is the cash received from :

1. Disposal of non current assets
2. Capital invested by the owner
3. Loans

It is also known as Capital Receipt