Question : Which of the following statements are true?
Statement 1- Payment of salaries, health services are the part of capital expenditure.
Statement 2- Revenue expenditure do not create any asset.
Option 1: Both are true .
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 2 is true and statement 1 is false.
Answer (1)
13th Jan, 2024
Correct Answer:
Statement 2 is true and statement 1 is false.
Solution :
Payment of salaries, health services are the part of revenue expenditure. It does not lead to any change in assets or liabilities.
Revenue expenditure do not create any asset or reduces any liability.
Hence option D is correct.
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