Question : Which of the following statements is true?

A) The wage bill of the government is a capital expenditure.

B) Disinvestment by the government in a company is a capital receipt.
Option 1: Only (A)
Option 2: Neither (A) nor (B)
Option 3: Both (A) and (B)
Option 4: Only (B)

Question

Question : Which of the following statements is true?

A) The wage bill of the government is a capital expenditure.

B) Disinvestment by the government in a company is a capital receipt.

Option 1: Only (A)

Option 2: Neither (A) nor (B)

Option 3: Both (A) and (B)

Option 4: Only (B)

Team Careers360 · Accepted Answer

Correct Answer: Only (B)

Solution : The correct option is Only (B).

Disinvestment by the government refers to the sale of its assets, which can include the sale of its stake in a company. The money received from disinvestment is treated as a capital receipt, as it involves a change in the government's financial assets. Capital receipts are those that either create a liability or reduce a financial asset.

The wage bill of the government is considered revenue expenditure because it represents the cost of running the government on a day-to-day basis. It is not a capital expenditure.

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Question : Which of the following statements is true?

A) The wage bill of the government is a capital expenditure.

B) Disinvestment by the government in a company is a capital receipt.
Option 1: Only (A)
Option 2: Neither (A) nor (B)
Option 3: Both (A) and (B)
Option 4: Only (B)

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Question : Which of the following statements is true? A) The wage bill of the government is a capital expenditure. B) Disinvestment by the government in a company is a capital receipt.Option 1: Only (A)Option 2: Neither (A) nor (B)Option 3: Both (A) and (B)Option 4: Only (B)

Related Questions

Question : Which of the following statement(s) is/are TRUE? I. $33^{3}>3^{33}$ II. $333>(3^{3})^{3}$Option 1: Only IOption 2: Only IIOption 3: Both I and IIOption 4: Neither I nor II

Question : Which of the following is not a capital expenditure?Option 1: Loans and advances by the central governmentOption 2: Expenditure on the acquisition of landOption 3: Investment in sharesOption 4: Subsidies payment

Question : Which of the following is a plant tissue? I. Meristematic tissue II. Permanent tissueOption 1: Only IIOption 2: Both I and IIOption 3: Neither I nor IIOption 4: Only I

Question : Which of the following is a natural acid-base indicator? I. Litmus II. TurmericOption 1: Only IIOption 2: Only IOption 3: Neither I nor IIOption 4: Both I and II

Question : Which of the following bills can be initiated only in the Lok Sabha?Option 1: Private members billOption 2: Constitution amendment billOption 3: Government billOption 4: Money bill