Question

Statement I :- Revenue Receipts are recurring in nature.
Statement II :- Revenue Receipts increase the Liability for the business.
(a) Only Statement I is true.
(b) Only Statement II is true.
(c) Both Statements are true.
(d) Both Statements are false.

Answer 1

Answer:

(A) option

Explanation:

Statement 1 is true because it is recurring but revenue receipts neither increase any liability nor reduction in asset.

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Answer 2

Only the statement I is true. (Option A)

• Revenue Receipts are the one's receipts that neither reduces the company's belongings nor create any liability.
• They are usually habitual and earned at some point of the conventional direction of the enterprise.
• Revenue receipts are cash obtained with the aid of an enterprise because of its regular operations. In this way, sales receipts affect the income or lack of an enterprise.
• Example: 'The revenue received after selling goods to a customer.'
• Therefore, only the first statement is correct.