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Question
A receipt is a capital receipt:
Options
If it satisfies any one of the two conditions: The receipts must create a liability for the government. The receipts must cause a decrease in the assets.
Borrowings are capital receipts as they lead to an increase in the liability of the government.
Both If it satisfies any one of the two conditions: The receipts must create a liability for the government. The receipts must cause a decrease in the assets. and Borrowings are capital receipts as they lead to an increase in the liability of the government.
None of these
Solution
Both If it satisfies any one of the two conditions: The receipts must create a liability for the government. The receipts must cause a decrease in the assets. and Borrowings are capital receipts as they lead to an increase in the liability of the government.
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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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