Certified Occupancy Specialist (COS) Practice Exam

Which of the following is an example of unearned income?

Wages from employment Salary from a full-time job Bonuses from employment Social Security and other benefits not tied to employment.

Correct Answer:

Social Security and other benefits not tied to employment.

Explanation:

Unearned income comes from sources other than performing work in the current period. Earned income comes from actually working—wages, salary, and bonuses you receive for your labor. Social Security and other benefits not tied to employment are unearned because they’re payments you receive without providing work at that moment. So this example best fits unearned income, while the others are considered earned income from employment.

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