passwella.
Menu

WAEC Financial Accounting 2012 Question 13

Question 13

Capital and Revenue Expenditure

Capital receipt is collected

  1. A.on sales of motor vehicle.
  2. B.on sales of stock in trade.
  3. C.from trade debtors.
  4. D.from trading activities.
Show the answer and explanation

Answer: A (on sales of motor vehicle.)

Explanation

Money from selling a fixed asset such as a motor vehicle is a capital receipt. Sales of stock and receipts from debtors are revenue receipts.