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SSC Financial and Cost Accounting P-1 QUESTION #6103
Question 1

Which statements about capital income and revenue income are correct?

  1. Revenue income includes amounts received from renting out part of business premises.
  2. Capital income includes amounts received from the sale of non-current assets.
  3. Capital income includes loans taken by a business.
  • 1, 2 and 3
  • 1 and 2 only✔️
  • 1 and 3 only
  • 2 and 3 only
Correct Answer Explanation

Option B (1 and 2 only) is correct.

  • Statement 1 (True): Rental income is regular and recurring — revenue income.
  • Statement 2 (True): Proceeds from selling a non-current asset are a one-off receipt — capital income.
  • Statement 3 (False): Loans are liabilities, not capital income.