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
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.