Distinguish between Capital Profit and revenue profit?
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Revenue profit is the money the business earns through its particular trade. A retail store that sells goods, for example, earns revenue profit when sales of those goods occur. With regard to income statements, revenue profits are primary activities, whereas capital profits are secondary activities:-
Capital profit includes:
profit earned on the sale of fixed assets(excess of selling price over the cost price).The premium on issue of securities.
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Revenue profit is the money the business earns through its particular trade. A retail store that sells goods, for example, earns revenue profit when sales of those goods occur. With regard to income statements, revenue profits are primary activities, whereas capital profits are secondary activities:-
Capital profit includes:
profit earned on the sale of fixed assets(excess of selling price over the cost price).The premium on issue of securities.
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