In accounting of non-profit organizations, the sale of old newspapers is generally considered as a/an ______________.
A
Revenue expense
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B
Capital expenditure
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C
Revenue income
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D
Capital receipt
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Solution
The correct option is C Revenue income Sale of old newspapers is a type of revenue income or receipt. This is because it neither created any liability for firm nor reduces any asset of the firm. Thus, such incomes are revenue receipts.