Advertisements
Advertisements
Question
Money received by sale of machine is a ______.
Options
Capital receipt
Revenue receipt
Deferred revenue receipt
None of these
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
Premium received on issue of shares is a ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Give two examples of Capital receipts.
What are revenue receipts?
Distinguish between Capital Receipts and Revenue Receipts.
Amount received on sale of assets is a ______ receipt.
Amount received on sale of stock-in-trade is a ______ receipt.
A receipt is a capital receipt because ______.
A receipt in substitution of an income is revenue receipt.
