Receipts of the government which create liability or reduce financial assets are termed as ___________.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. capital receipts.
- Capital receipts refer to incoming cash flows (receipts) originating from the sale of fixed assets, shares, or debt.
- These receipts are different from revenue receipts, which are generated through the government's regular operating activities.