Question

Q.4 Differential between capital receipts and revenue receipts.

Answer 1

Meaning:
Capital Receipts are the income generated from investment and financing activities of the business.

Revenue Receipts are the income generated from the operating activities of the business.
Nature:
Non-Recurring

Recurring

Term:
Long Term

Short Term

Shown in:
Balance Sheet

Income Statement

Received in :
exchange ofSource of income

IncomeValue of asset or liability

Decreases the value of asset or increases the value of liability.I

Increases or decreases the value of asset or liability.