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Question
Rent received and commission received are examples of ______.
Options
Capital Expenditure
Revenue Expenditure
Capital Receipts
Revenue Receipts
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Solution
Rent received and commission received are examples of Revenue Receipts.
Explanation:
- Revenue receipts are the receipts obtained during the normal course of business operation and are of a recurring nature.
- Some examples of revenue receipts are Interest and dividend received on investments, Fees and commission received for services rendered, Rent received from tenants etc.
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RELATED QUESTIONS
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:
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- Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
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Non-recurring receipts like additional capital, loan, etc. are ______.
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