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What is Capital Expenditure?

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प्रश्न

What is capital expenditure?

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उत्तर १

Capital expenditure is the government expenditure which reduces the liability of the government and also creates assets for the government such as domestic or multinational corporation shares purchased by the government.

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उत्तर २

It is an expenditure incurred during an accounting period, the benefits of which will be available for more than one accounting period. It includes any expenditure resulting in the acquisition of any fixed asset or contributes to the revenue earning capacity of the business. It is non-recurring in nature.

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अध्याय 11: Capital and Revenue Transactions - Very short answer questions [पृष्ठ २३६]

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
अध्याय 11 Capital and Revenue Transactions
Very short answer questions | Q II 2. | पृष्ठ २३६

संबंधित प्रश्न

What is revenue expenditure?


Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.

Expenditure on a collection of taxes.


Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.


Explain how taxes and government expenditure can be used to influence revenue expenditure and capital expenditure?


Calculate Autonomous Consumption Expenditure from the following data about an economy which is in equilibrium: 
National income = 500
Marginal propensity to save = 0.30
Investment expenditure = 100


Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:

Expenditure on scholarships


Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:

Expenditure of building a bridge.


What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.


Answer the following question.
How are capital expenditure different from Revenue expenditure?  Discuss briefly.


Distinguish between capital expenditure and revenue expenditure.


Capital expenditure is that estimated expenditure of the government which?


The expenditure multiplier is the ratio of ______.


S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

What will be the primary deficit?


S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

Which of the following is a non-tax revenue for the government?


Purchase of shares is related to ______


Subsidies and expenditure on scholarships are examples of ______


Which one of the following is not a capital expenditure?


Identify the correctly matched pair of the items in Column A to those in Column B:

Column A Column B
1. Revenue Expenditure (a) Does not cause any reduction in government liability
2. Capital Expenditure (b) Which creates corresponding liability for the government
3. Revenue Receipts (c) Which causes a reduction in assets of the government
4. capital Receipts (d) Causes reduction in government liability.

‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the economically backward section of the society’.

Identify and discuss the nature of the government expenditure indicated in the given statement.


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