What do you mean by revenue receipts? Why is tax, profits of public se

1.	What do you mean by revenue receipts? Why is tax, profits of public sector undertakings, corporation tax, fee of Government College, grant and aid treated as revenue receipts?
Answer» Revenue receipt is a receipt which neither reduces an asset nor creates any liability. Tax neither reduces assets nor creates a liability for the government. So treated as a revenue receipt. Corporation tax neither reduces assets nor creates any liability for the government. So treated as a revenue receipt. Fee of Government College neither reduces assets nor creates any liability for the government. So treated as a revenue receipt. Grant and aid neither reduces assets nor creates any liability for the government. So treated as a revenue receipt. Profits of public sector undertakings neither reduce assets nor create any liability for the government. So treated as a revenue receipt.

What do you mean by revenue receipts? Why is tax, profits of public sector undertakings, corporation tax, fee of Government College, grant and aid treated as revenue receipts?

Answer»

Revenue receipt is a receipt which neither reduces an asset nor creates any liability.

Tax neither reduces assets nor creates a liability for the government. So treated as a revenue receipt.

Corporation tax neither reduces assets nor creates any liability for the government. So treated as a revenue receipt.

Fee of Government College neither reduces assets nor creates any liability for the government. So treated as a revenue receipt.

Grant and aid neither reduces assets nor creates any liability for the government. So treated as a revenue receipt.

Profits of public sector undertakings neither reduce assets nor create any liability for the government. So treated as a revenue receipt.

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