Accounting · Capital and Revenue Expenditure
Identify the incorrect statement while classifying items as revenue and capital.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The compensation distributed by the Municipal Corporation in lieu of acquisition of agricultural land for road construction is a revenue receipt.✓
- 2Sale of property is a capital receipt.
- 3Misappropriation or embezzlement of cash by an employee is an example of loss of revenue.
- 4Receipt in lieu of source of income is a capital receipt.
Correct answer
The compensation distributed by the Municipal Corporation in lieu of acquisition of agricultural land for road construction is a revenue receipt.
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