Question

Fees of the government college is a revenue receipt because:

• A. It creates liability of the government.
• B. It neither creates any liability nor reduces any asset of the government.
• C. It neither creates any asset nor reduces any liability of the government.
• D. It increases asset of the government.

Answer 1

The correct option is B It neither creates any liability nor reduces any asset of the government.

Revenue receipts refer to those money receipts which neither creates any liability nor reduces any asset of the government. For example: Tax receipts and non-tax receipts( fees,fines, escheat, etc) are a part of revenue receipts.