Question : Which of the following is a revenue expenditure?
Option 1: Expenditure on scholarship
Option 2: Expenditure on purchasing computers
Option 3: Repayment of loans
Option 4: Amount borrowed from USA repaired
Answer (1)
25th Jan, 2024
Correct Answer:
Expenditure on scholarship
Solution :
Expenditure on scholarship 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 A is correct.
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