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Question
Rent received by a business firm is an example of ______.
Options
Revenue receipt
Capital receipt
Capital expenditure
Deferred revenue expenditure
MCQ
Fill in the Blanks
Solution
Rent received by a business firm is an example of Revenue receipt.
Explanation:
Revenue receipts are those obtained during the normal course of business operation and are recurring. These receipts neither create a liability nor reduce the value of fixed assets.
shaalaa.com
Capital and Revenue
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