Question

Amount received from which of the following is not a capital receipt?

• A. sale of assets
• B. sale of shares
• C. sale of goods and services
• D. all the above

Answer 1

Answer: (C)

sale of goods and services

Capital receipts: This is the income flow from the sale of fixed assets, cash from the sale of shares in the business, cash from the issuance of a debt instrument which includes loans and bonds. The sale of goods and services is not a capital receipt.