what is the meaning of revenue receipts? What are the two mains sources of revenue receipts?Explain them .
Answers
Answer:
Revenue recipts:
Revenue receipts are funds received by a business as a result of its core business activities. It leads to an overall increase in the total revenue of the company. These funds are generated from a firm’s operating activities hence they are shown inside trading and profit and loss account and not in a balance sheet.
They are recurring in nature which means that they can be seen quite often and can also be used for distribution of profits. Unlike capital receipts which can not be used to create reserves, revenue receipts are used to create reserve funds.
Revenue receipts of the government are divided into two groups, namely, (i) tax revenue and (ii) non-tax revenue.
Tax revenue consists of proceeds of taxes and other duties levied by the Union government such as income tax, corporate tax, excise duty, customs duty, service tax, etc.Non-tax revenue consists of all receipts from sources other than taxes as shown in that chart.
I typed down the detailed answer but it is not letting me send that.... it's says change it even though it was fine only I am sorry