Question : Which of the following is a revenue expenditure?
Option 1: Expenditure on subsidies
Option 2: Defence capital equipment purchased from Germany
Option 3: Expenditure on construction of school building
Option 4: Amount borrowed from USA repaired
Correct Answer: Expenditure on subsidies
Solution : Expenditure on subsidies 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 A is correct.
Question : Fill in the blanks- Construction of school building is a _________ expenditure of the government.
Option 1: Capital
Option 2: Revenue
Option 3: Both A and B
Option 4: Neither A nor B.
Question : Fill in the blanks- Construction of school is a ________ expenditure.
Option 1: Revenue
Option 2: Capital
Question : Which of the following is considered a capital expense?
Option 1: Payment of salaries
Option 2: Pension
Option 3: Construction of school buildings
Option 4: Subsidies
Option 1: Pension
Option 2: Payment of salaries
Option 3: Subsidies
Option 4: Construction of school buildings
Question : Which of the following is a revenue receipts?
Option 1: Financial help from a multinational company for victims of flood affected.
Option 2: Loan take it from Japan for construction of Metro.
Option 3: Funds taken from public in the form of national savings certificates.
Option 4: Sale of 40% of shares of public sector undertakings.
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