Question on: WAEC Accounting - 2012
Capital receipt is collected
A
on sales of motor vehicle
B
on sales of stock in trade
C
from trade debtors
D
from trading activities
Ask EduPadi AI for a detailed answer
Correct Option: A
Capital receipts are receipts that create liabilities or reduce financial assets. Option A is correct, because when a business sells its motor van, it leads to a reduction in assets
Add your answer
Please share this, thanks!
No responses