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Which of the following would be considered a capital receipt?
  • a)
    Sale of old machinery
  • b)
    Revenue from sales
  • c)
    Interest received on investments
  • d)
    Cash received from customers
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Which of the following would be considered a capital receipt?a)Sale of...
Capital receipts are proceeds from the sale of fixed assets or additional investments by owners. The sale of old machinery would be considered a capital receipt as it is related to a fixed asset.
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Which of the following would be considered a capital receipt?a)Sale of old machineryb)Revenue from salesc)Interest received on investmentsd)Cash received from customersCorrect answer is option 'A'. Can you explain this answer?
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