Revenue receipts are shown in___________?
Correct answer: D. Trading and Profit and Loss A/c
- A. Balance Sheet
- B. Profit and Loss appropriation A/c
- C. Manufacturing A/c
- D. Trading and Profit and Loss A/c
Explanation
Revenue receipts arise from the ordinary operating activities or recurring income of the business, so they are transferred to the Trading and Profit and Loss Account. Capital receipts are generally presented in the balance sheet or related capital accounts.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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