Advertisements
Advertisements
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.
Advertisements
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.
APPEARS IN
RELATED QUESTIONS
Distinguish between capital receipt and revenue receipt.
Write any two differences between capital and revenue Receipts.
Capital receipts are usually obtained in case of a company:
A receipt is a capital receipt:
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Non-recurring receipts like additional capital, loan, etc. are ______.
Give two examples of Capital receipts.
Amount received on sale of assets is a ______ receipt.
Amount received on sale of stock-in-trade is a ______ receipt.
Sale of securities by an investment company is a capital receipt.
