Question : Which of the following is a revenue expenditure?
Option 1: Expenditure on subsidies
Option 2: Defence capital equipment purchased from Germany
Option 3: Expenditure on construction of school building
Option 4: Amount borrowed from USA repaired
Answer (1)
17th Jan, 2024
Correct Answer:
Expenditure on subsidies
Solution :
Expenditure on subsidies 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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