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.
Question : Fill in the blanks- Construction of school building is a _________ expenditure of the government.
Question : Fill in the blanks- Construction of school is a ________ expenditure.
Question : Which of the following is considered a capital expense?
Question : Which of the following is a revenue receipts?
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