Question : Which of the following statement are true?

Construction of school building in a capital receipt.

Expenditure incurred on administrative and defence service is a capital expenditure

Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.

Question

Question : Which of the following statement are true?

Construction of school building in a capital receipt.
Expenditure incurred on administrative and defence service is a capital expenditure

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Team Careers360 · Accepted Answer

Correct Answer: Both are false.

Solution : Construction of school building in a capital expenditure as it increases asset of the government.
Expenditure incurred on administrative and defence service is a revenue expenditure as it neither creates any asset nor reduces any liability of the government.

Hence, Option B is correct.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Related Questions

Question : Which of the following statement are true? Repayment of loan is a capital expenditure Expenditure on building a bridge is a capital expenditure.

Question : Which of the following statement are true? Defence capital equipment purchased from Russia is a capital expenditure. Grants given to state government is a revenue expenditure.

Question : Which of the following statement are true? Expenditure on scholarship is a capital expenditure. Subsidies is a revenue expenditure

Question : Which of the following statement are true? Corporate tax is revenue receipts. Tax receipt is a capital receipt

Question : Which of the following statement are true? Recovery of loan is a capital receipt. Interest received in loans is a capital receipts.

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

Question : Which of the following statement are true?

Repayment of loan is a capital expenditure

Expenditure on building a bridge is a capital expenditure.

Question : Which of the following statement are true?

Defence capital equipment purchased from Russia is a capital expenditure.

Grants given to state government is a revenue expenditure.

Question : Which of the following statement are true?

Expenditure on scholarship is a capital expenditure.

Subsidies is a revenue expenditure

Question : Which of the following statement are true?

Corporate tax is revenue receipts.

Tax receipt is a capital receipt

Question : Which of the following statement are true?

Recovery of loan is a capital receipt.

Interest received in loans is a capital receipts.