PSY2102 Lecture Notes - Lecture 2: Income Statement, Earnings Before Interest And Taxes
Document Summary
Capital and revenue receipts, differences between capital and revenue receipts. Capital receipts are given when a company makes an asset. Revenue receipts are given to you every year as a tax statement. This article explains the difference between capital receipts and revenue receipts. It talks about those receipts that are a part of revenue such as income from taxes, public borrowing, fees charges collected by the government, and income from public undertakings. It also discusses capital receipts such as the sale of assets and loans from abroad. ), other non-tax revenue (such as interest receipts, revenue from public enterprises, etc. ), and grants and loans given by other governments and institutions. The difference between capital and revenue receipts is based on the working of an expenditure. Capital receipts are the receipts that derive their value from the capital. In general, all bought assets are capital and the money paid to acquire such assets is known as capital receipts.