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Question : Identify the correct match.
A) Pension to retired government employees - Revenue Receipt
B) Purchase of Machinery in Railways - Capital Expenditure

Option 1: Both A and B

Option 2: Only A

Option 3: Neither A nor B

Option 4: Only B


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Only B


Solution : The correct answer is Only B .

The term "capital expenditure" describes the money to buy, maintain, or enhance long-term assets to increase productivity or earnings potential. Purchasing new or used machinery is a benefit for the business. Therefore, the cost of the machinery is a capital expense.

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