Forums › FIA Forums › FA1 Recording Financial Transactions Forums › What is the difference between capital income and revenue income?
- This topic has 7 replies, 7 voices, and was last updated 4 years ago by atlantic.
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- August 13, 2016 at 3:34 pm #332959
Hi there, how do I easily distinguish between capital income and revenue income? Many thanks.
August 25, 2016 at 1:31 pm #335143Revenue is your normal income from sales of goods or the supply of services.
Capital income is income that arises from an asset because of the passage of time, not because the asset is being used. So, buying land at $2m and selling at $3m generates capital income of $1m.
August 26, 2016 at 4:37 pm #335372Thank you!
September 11, 2016 at 3:50 pm #339941very helpful
February 21, 2018 at 8:52 pm #438270The elements which are directly related to the measurement of profit are Income and
Expenses.
i. In line with the above statement, what is Income?
ii. List TWO characteristics each of Capital Income and Revenue Income.July 13, 2018 at 7:18 pm #462120revenue is a normal income from sales of goods and services and capital income is the income that occurs because of passage of time
November 7, 2019 at 2:05 pm #551777Revenue is your normal income from sales of goods or the supply of services.
Capital income is income that arises from an asset because of the passage of time, not because the asset is being used. So, buying land at $2m and selling at $3m generates capital income of $1m.
December 11, 2019 at 7:30 pm #555702Capital income is income that arises from an asset because of the passage of time, not because the asset is being used. So, buying land at $2m and selling at $3m generates capital income of $1m.
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