Sale proceeds of fixed assets are a

A. Capital profit

B. Revenue profit

C. Capital receipt

D. Revenue receipt


Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts. Cash received from sale of fixed assets, the loan amount received by the company from a bank, and capital invested in the business by a new partner are all examples of capital receipts.

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