What is the difference between national income and personal income? Multiple Choice Personal taxes. National income includes income earned both in the United States and abroad, while personal income only includes that income earned within the borders of the United States. National income represents before-tax income, while personal income measures how much is available for spending after all taxes have been subtracted. National income represents income earned by American-owned resources, while personal income measures received income, whether earned or unearned.

Cash flow can be defined as the net amount of cash and cash- equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow.

2. Financing cash flow.

3. Investing cash flow.

An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.

In Financial accounting, the difference between national income and personal income is that national income represents the income earned by American-owned resources such as business firms, corporations, or entities, while personal income measures received income by households, whether earned or unearned. Thus, national income refers to the overall amount of money that is earned within a particular country.