--%>

Base of categorizing receipts into revenue and capital

What is the base of categorizing receipts into revenue and capital receipts?

E

Expert

Verified

Answer: Revenue receipts are such which neither make a liability for the government nor decrease the assets of government like sales tax, income tax, fees, profits and so on. Capital receipts are such that either makes a liability for government or decrease assets like borrowings, disinvestment, recovery of loans and so on.

   Related Questions in Macroeconomics

  • Q : Problem onto marginal tax rates A

    A prosperous person who made higher and higher incomes yearly would possibly benefit most from: (w) proportional tax system. (x) progressive tax system, much like the one in place today. (y) regressive tax system. (z) fixed percentage tax system.

    Q : Interest receipt Why is interest

    Why is interest received classified as revenue receipt? Answer: Interest received is a revenue receipt since it does not build any liability nor it leads to the red

  • Q : Problem on production function Consider

    Consider a model economy with a production function Y = K0.2(EL)0.8, where K is capital stock, L is labor input, and Y is output. The savings rate (s), which is defined as

  • Q : Functions of central bank Describe

    Describe functions of central bank? Answer: (A) Issue of currency: Central bank is the only authority for the issue of currency

  • Q : Invesstment multiplier what can be the

    what can be the minimum value of investment multiplier?

  • Q : Fiscal deficit in government budget

    What does fiscal deficit in government budget mean? Answer: This means more borrowing on the portion of government.

  • Q : Difference between APC and MPC

    Differentiate between APC and MPC. The value of which of them can be greater than another and when? Answer: APC is the average

  • Q : Relevance of matter-SWOT analysis

    Relevance of matter: Relevance of matter is very much important while choosing any goals. Are the goals relevant to the vision of the company? A goal of having maximum number of customers seems fantabulous, however at the same time bank needs to make

  • Q : Equilibrium The equilibrium interest

    The equilibrium interest rate is determined

  • Q : Value added technique for national

    What is the alternative name of value added technique of estimating national income? The alternative name of value added technique of estimating national income is production method.