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      Question

      All of the following are capital receipts, except

      ________
      A Share Capital Correct Answer Incorrect Answer
      B Share premium Correct Answer Incorrect Answer
      C Debenture Correct Answer Incorrect Answer
      D Trade Creditor Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Capital receipts are funds that a companyreceives from non-operational sources. They are typically non-recurring transactions that increase liabilities or decrease assets. Capital receipts are used for financing long-term expenditures or debt repayments. These include capital raised and borrowings raised, related receipts. Trade creditor is a revenue receipt.

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