Question

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

a. Salary paid to government employees.

b. Expenditure on construction of roads.

c. Pension paid to retired government employees.

d. Interest paid on national debt.​

Answer 1

Answer:

(i) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government.

(ii) It is a capital expenditure as it increases asset of the government.

(iii) It is a capital expenditure as it reduces the liability of the government

(iv) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government

(v) It is a capital expenditure as it increases asset of the government.

(vi) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government.

(vii) It is a capital expenditure as it increases asset of the government.

(viii) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government.

(ix) It is a capital expenditure as it increases asset of the government.

Answer 2

Answer:

a.Salary

b.Expenditure

c.Pension

d.National Debt

Explanation:

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