In the case of a newsagent, which of the following is a revenue receipt?
Select ONE answer:
- The proceeds of the sale of plant and equipment.
- Money received from an insurance company as a result of crashing a delivery vehicle.
- A refund received from a supplier as compensation for damaged stock supplied.
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct – The proceeds of the sale of plant and equipment is a capital receipt.
- Not correct – Money received from an insurance company as a result of crashing a delivery vehicle is a capital receipt
- Correct
- Not correct
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