Advertisements
Advertisements
Question
Compensation received for the surrender of a right is a revenue receipt.
Options
True
False
Solution
This statement is False.
APPEARS IN
RELATED QUESTIONS
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:
- Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
- Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
- Registration fees paid at the time of purchase of a building.
- Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
- Depreciation charged on a plant.
- The expenditure incurred in erecting a platform on which a machine will be fixed.
- Advertising expenditure, the benefits of which will last for four years.
Premium received on issue of shares is a ______.
Capital receipts are usually obtained in case of a company:
Rent received and commission received are examples of ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Non-recurring receipts like additional capital, loan, etc. are ______.
Define Capital receipts.
Amount received on sale of assets is a ______ receipt.
Amount obtained from a customer previously written off as bad debt is a ______ receipt.
A receipt is a capital receipt because ______.
