Compensation received for loss of trading asset is a ________.

Question

Question: Compensation received for loss of trading asset is a ________.

Options:

1.  Capital receipt
2.  Revenue receipt
3.  A casual receipt
4.  None of these

Answer 1

1. Capital receipt

Compensation received for loss of trading asset is a Capital receipt.

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More information:

Capital receipts are non-routine receipt that reduce financial assets and become load of the organization or business. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts.

Example: Compensation received for loss of trading asset