Accounting Multiple Choice Question – 3 December 2019

In the case of a newsagent, which of the following is a revenue receipt?

Select ONE answer:

1. The proceeds of the sale of plant and equipment.
2. Money received from an insurance company as a result of crashing a delivery vehicle.
3. A refund received from a supplier as compensation for damaged stock supplied.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct – The proceeds of the sale of plant and equipment is a capital receipt.
2. Not correct – Money received from an insurance company as a result of crashing a delivery vehicle is a capital receipt
3. Correct
4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor View all posts by stuart001uk2014