Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 30)

What is a key difference between capital and revenue receipts?

Capital receipts increase income; revenue receipts do not.

Revenue receipts increase owner's equity; capital receipts do not.

Capital receipts are used for financing; revenue receipts are for operations.

Revenue receipts are irregular; capital receipts are recurring.

Capital receipts finance capital expenditures, while revenue receipts relate to operational income.