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National Income Accounting — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsNational Income Accounting4 Marks
Question
Differentiate between Operating Surplus and Compensation of Employees.
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Answer

S. No
 Basis
Operating Surplus
Compensation of employees
1.
 Meaning
It is the sum of Income from property and income from entrepre-neurship.
It is the amount earned by an employee from his employer whether in cash or in kind or through any other social security scheme.
2.
 Nature
It is received by virtue of being owners or controllers of property.
It is received by virtue of work done.
3.
 Components
It includes the following items:
1.
Rent.
2.
Interest.
3.
Profit.
4.
Royalty.
It consists of following items:
1. Wages and salaries.
2. Employer's contribution towards social security scheme.
4. 
 Alternative Name
It is known as non wage income.
It is known as wage income or emoluments of employees.

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