Question : Which of the following statement are true?
- Expenditure on scholarship is a capital expenditure.
- Subsidies is a revenue 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.
Answer (1)
11th Jan, 2024
Correct Answer:
Statement 1 is false, statement 2 is true.
Solution :
Expenditure on scholarship is a revenue expenditure as it neither creates any assets nor creates any liabilities of the government.
Subsidies is a revenue expenditure as it neither creates any assets nor reduces any liability of the government.
Hence, Option D is correct.
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