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Question
A receipt is a capital receipt because ______.
Options
The amount involved is large.
The amount is received in lump sum.
The amount relates to fixed assets.
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Solution
A receipt is a capital receipt because the amount relates to fixed assets.
Explanation:
Capital receipts involve creation of a liability or reduction in the value of fixed assets.
RELATED QUESTIONS
Premium received on issue of shares is a ______.
Capital receipts are usually obtained in case of a company from:
A receipt is a capital receipt:
Non-recurring receipts like additional capital, loan, etc. are ______.
Give two examples of Capital receipts.
Give three examples of Revenue receipts.
What do you understand by Turnover?
A receipt in substitution of an income is revenue receipt.
Any lump sum receipt is always a capital receipt.
Sale of securities by an investment company is a capital receipt.
