Question

Which of the following conditions satisfy the concept of revenue receipts?

• A. Does not create a liability
• B. Does not reduce an asset
• C. Neither (a) nor (b)
• D. Both (a) and (b)

Answer 1

The correct option is D Both (a) and (b)

Revenue receipts refer to those money receipts which does not create a liability for the government or cause reduction in assets of the government. Thus, both the conditions satisfy the concept of revenue receipts.