Question

Which one of the following is a part of capital expenditure?

Options

• Salary paid to army officers

• Expenditure on construction of Metro

• Pension paid to retired government employees

• None of these

Answer 1

Expenditure on construction of Metro

Explanation:

Capital expenditure involves spending on the creation of long-term assets, such as infrastructure projects. Expenditure on the construction of a Metro creates a durable asset and is classified as capital expenditure.