Question

capital receipts should be used for asset creating projects .explain the statement

Answer 1

Receipts which are recurring (received again and again) by nature and which are available for meeting all day to day expenses (revenueexpenditure) of a business concern are known as "Revenue receipts", e.g. sale proceeds of goods, interest received, commission received, rent received, dividend received etc.

Answer 2

Revenue expenditure includes expenses which are not used for the creation of assets or repayment of ... A capital account is an account that includes the capital receipts and the payments. It basically includes assets as well as liabilities of the government. ... Ans: The above statement is True.