Question : Which of the following is a revenue expenditure?
Option 1: Expenditure on building a bridge
Option 2: Expenditure on construction of flyovers
Option 3: Repayment of loans
Option 4: Pension paid to retired government employee
Answer (1)
10th Jan, 2024
Correct Answer:
Pension paid to retired government employee
Solution :
Pension paid to retired government employee is a revenue expenditure because it neither create any assets nor reduces any liability. Rest of the three are part of capital expenditure .
Hence Option D is correct.
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