Advertisements
Advertisements
Question
Money received by sale of machine is a ______.
Options
Capital receipt
Revenue receipt
Deferred revenue receipt
None of these
Advertisements
Solution
Money received by sale of machine is a Capital receipt.
Explanation:
Capital receipts refer to the receipts of a non-recurring nature such as additional capital from owners, money obtained from a sale of fixed assets, etc.
APPEARS IN
RELATED QUESTIONS
Write any two differences between capital and revenue Receipts.
Rent received and commission received are examples of ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Distinguish between Capital Receipts and Revenue Receipts.
Amount received on sale of stock-in-trade is a ______ receipt.
Amount obtained from a customer previously written off as bad debt is a ______ receipt.
A receipt is a capital receipt because ______.
Premium paid on issue of shares is a capital receipt.
Compensation received for the surrender of a right is a revenue receipt.
Any lump sum receipt is always a capital receipt.
