Question : Which of the following is a revenue expenditure?
Option 1: Loans given to union territories
Option 2: Expenditure on construction of metros
Option 3: 10% shares purchase by the government in a private company
Option 4: Salary paid Army officers.
Answer (1)
18th Jan, 2024
Correct Answer:
Salary paid Army officers.
Solution :
Salary paid to army officer is a revenue expenditure as 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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