Advertisements
Advertisements
Question
Rent received and commission received are examples of ______.
Options
Capital Expenditure
Revenue Expenditure
Capital Receipts
Revenue Receipts
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.
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 ______.
Define Capital receipts.
Give two examples of Capital receipts.
What are revenue receipts?
Give three examples of Revenue receipts.
Amount received on sale of assets is a ______ receipt.
A receipt in substitution of an income is revenue receipt.
Compensation received for the surrender of a right is a revenue receipt.
Sale of securities by an investment company is a capital receipt.
