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Hi there, how do I easily distinguish between capital income and revenue income? Many thanks.
Revenue 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.
The 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.revenue is a normal income from sales of goods and services and capital income is the income that occurs because of passage of time
Revenue 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.
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