Advertisements
Advertisements
Question
This expenditure relates to normal functioning of the government departments and provision of various government services. The main examples of such expenditures are salaries, pensions, interest, subsidies, grants to the state governments, etc.
Options
Revenue expenditure
Capital expenditure
Regular expenditure
None of these
Solution
Revenue expenditure
Explanation:
- Revenue expenditure is expenditure incurred for purposes other than the creation of physical and financial assets of the central government.
- It relates to those expenses incurred for the normal functioning of the government departments and various services.
APPEARS IN
RELATED QUESTIONS
______ expenditure is incurred for meeting day to day expenses of business and its benefit is exhausted within the current accounting year.
Give six examples of revenue expenditure becoming capital expenditure.
Expenditure incurred to maintain the assets is ______ expenditure.
State with reason whether the following is Capital or Revenue Expenditure:
Compensation paid to retrenched workers.
State with reason whether the following is Capital or Revenue Expenditure:
Whitewashing of office premises.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Legal expenses for defending the ownership of a trade mark.
State whether the following expense is Capital or Revenue.
Purchase of postage and stationery.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Repairs of typewriters.
Classify the following:
Insurance premium.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Depreciation on fixed assets.
