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

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
पाठ 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.


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


Which one of these is a revenue expenditure?


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.


The Government of India has decided to vaccinate the adult population of India (with Covaxin/Covishield), without any charge. This would be categorized as ____________.


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 is the revenue 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

What will be the primary deficit?


Calculate Investment expenditure from the following data about an economy that is in equilibrium.

National Income = Rs 1,000

Marginal Propensity to Save = 0.20

Autonomous consumption expenditure = Rs 100


Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (1) is Rs 50 crores, MPS is 0.2 and the level of income (Y) is Rs 4000 crores.


The government uses ______ as proxy for income of households to identify the poor.


Construction of railway line is a type of ______ expenditure.


Which one of the following is not a capital expenditure?


‘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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