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