BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue Receipts
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Capital Receipts
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Donations to Government
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Revenue from Exports
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Detailed explanation-1: -Capital receipts either create liabilities or reduce assets of the government. Capital receipts can be in the form of disinvestment, where the government sells or liquidates public companies.
Detailed explanation-2: -Capital receipts are those receipts of the government which either create a liability or causes a reduction in the assets of the government.
Detailed explanation-3: -All those receipts of the government which create liability or reduce financial assets are termed as capital receipts.
Detailed explanation-4: -Non-debt capital receipts are those receipts that the government receives through the sale of assets. Around 75% of the government’s overall budget receipts consist of these receipts. A few examples of non-debt capital receipts include disinvestment, recovery of advances and loans, bonus share issues and more.
Detailed explanation-5: -In the balance sheet, capital receipts are mentioned in the liabilities section.