Read the following about Revenue Receipts.
A. Revenue receipts are those receipts that do not lead to a claim on the government.
B. Revenue receipts are divided into tax and non-tax revenues.
Identify the CORRECT statement/statements.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Both A and B.
- Tax revenues, which come from taxes like income tax and sales tax, and non-tax revenues, which come from sources like government services, fees, and fines, are the two categories into which these receipts fall.
- Since they correctly characterize the type and classification of revenue receipts, statements A and B are both true.