Question : Which of the following is a revenue expenditure?
Option 1: Expenditure on building a bridge
Option 2: Expenditure on construction of flyovers
Option 3: Repayment of loans
Option 4: Pension paid to retired government employee
Correct Answer: Pension paid to retired government employee
Solution : Pension paid to retired government employee is a revenue expenditure because it neither create any assets nor reduces any liability. Rest of the three are part of capital expenditure . Hence Option D is correct.
Option 1: Expenditure on scholarship
Option 2: Expenditure on purchasing computers
Option 4: Amount borrowed from USA repaired
Option 1: Loans given to union territories
Option 2: Expenditure on construction of metros
Option 3: 10% shares purchase by the government in a private company
Option 4: Salary paid Army officers.
Option 1: Expenditure on subsidies
Option 2: Defence capital equipment purchased from Germany
Option 3: Expenditure on construction of school building
Question : Which of the following is a capital expenditure?
Option 1: Purchase of Metro coaches from Japan.
Option 2: Expenditure on collection of taxes
Option 3: Interest paid on national debt
Option 4: Pension paid to retired persons.
Option 2: Grants given to state government.
Option 3: Repayment of loan.
Option 4: Expenditure on collection of taxes.
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