Question : Fill in the blanks- Interest payment is a ________ expenditure.
Option 1: Revenue
Option 2: Capital
Option 3: Both A and B
Option 4: Neither A nor B.
Correct Answer: Revenue
Solution : Interest payments is a revenue expenditure as it neither creates any assets nor reduces any liability. Hence Option A is correct.
Question : Fill in the blanks- Interest paid on national debt is a ________ expenditure.
Question : Fill in the blanks- Expenditure on collection of tax is a ________ expenditure.
Question : Fill in the blanks- Salaries paid to staff is a ________ expenditure.
Question : Fill in the blanks- Construction of school is a ________ expenditure.
Question : Fill in the blanks- Subsidies is a ________ expenditure.
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