Distinguish between Money measurement concept and matching concept.
(b) Define revenue receipts and give examples. How are these receipts treated?
Explain
Answers
Answer:
A) Answer of part"A" in the attachment....
B) Revenue receipts:-
Revenue receipts can be defined as those receipts which neither create any liability nor cause any reduction in the assets of the government. They are regular and recurring in nature and the government receives them in the normal course of activities.
Examples of Revenue receipts:-
Few common examples are receipts from sale of good and services, discount received from creditors or suppliers, interests earned, dividends received, rent received, commission received, bad-debts recovered, income from other sources, etc.
How these Receipts are treated:-
Government receipts are divided into two groups—Revenue Receipts and Capital Receipts. All Government receipts which either create liability or reduce assets are treated as capital receipts whereas receipts which neither create liability nor reduce assets of Government are called revenue receipts.
HOPE IT HELPS YOU
THANK YOU❤❤❤❤❤❤❤
