Which of the following is found in a receipts and payments account?
Answer Details
The purchase of fixed assets is found in a receipts and payments account. A receipts and payments account is a summary of the cash received and paid out by an organization during a given period of time, typically a year. This account includes all cash receipts, including both revenue and capital receipts, as well as all cash payments, including revenue and capital payments. The purchase of fixed assets, which is a capital expenditure, is recorded as an outflow of cash and is included in the payments section of the receipts and payments account. Accruals, prepayments, and depreciation of fixed assets are not typically included in a receipts and payments account, as they are non-cash transactions.