Question : Which of the following statement are true?
- Repayment of loan is a capital expenditure
- Expenditure on building a bridge 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.
Answer (1)
24th Jan, 2024
Correct Answer: Both are true.
Solution :
Repayment of loan is a capital expenditure as it reduces the liability of the government.
Expenditure on building a bridge is a capital expenditure as it increases assets of the government.
Hence, Option A is correct.
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