Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 22)
Which of the following statements is true regarding capital receipts?
They increase the income of the business.
They are used to finance the day-to-day operations of the business.
They typically increase owner's equity or create liabilities.
They primarily consist of sales revenue.
Explanation
Capital receipts affect equity or liabilities, while revenue receipts increase income.
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