Accounting for IGCSE & O level - Accounting Procedures (Section 10 - No. 7)

Which of the following is NOT a characteristic of revenue receipts for a business?
Arise from the sale of goods or services to customers.
Represent income for the business.
Are usually recurring.
Increase the owner's equity.

Explanation

Revenue receipts directly impact the income of a business. They usually do not increase owner's equity; in fact, capital receipts do.

Comments (0)

Advertisement