[amp_mcq option1=”a capital receipt” option2=”an asset” option3=”a revenue receipt” option4=”None of the above” correct=”option3″]
The correct answer is: C. a revenue receipt.
A revenue receipt is a receipt that is received by a business or organization in exchange for goods or services that have been provided. In the case of a sports club, the sale of grass would be considered a revenue receipt because it is a sale of goods that have been provided by the club.
A capital receipt is a receipt that is received by a business or organization in exchange for the sale of an asset. In the case of a sports club, the sale of a piece of equipment would be considered a capital receipt because it is the sale of an asset that the club owns.
An asset is a resource that a business or organization owns and that has economic value. In the case of a sports club, assets might include equipment, land, buildings, and intellectual property.
None of the above is not the correct answer because the sale of grass is a revenue receipt.