Premium earned on issue of Shares' is an example of
A. Capital expenditure
B. Revenue receipt
C. Deferred revenue expenditure
D. None of these
Answer: Option D
This Question Belongs to Commerce >> Accounting
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Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
A premium amount is any sum that is charged in addition to the share's face value. Capital receipts are non-recurring receipts that result in an increase in liabilities or a reduction in assets. When premium money is not regularly received, it exposes the company to responsibility. It is therefore a capital receipt.