Accounting for IGCSE & O level - Accounting Procedures (Section 1 - No. 18)
Which is a true statement about capital receipts?
Capital receipts increase the income and profit of the business.
Capital receipts only affect the financial position of the business.
Capital receipts are recorded as liabilities in the ledger.
None of the above.
Explanation
Capital receipts only affect the financial position and do not affect the income or profit.
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