Question

Which of the following is an example of Revenue Expenditure?

पर्याय

• Acquisition of land

• Machinery and equipment

• Subsidies

• Investment in shares

Answer 1

Salaries, pensions, interest payments, subsidies and grants are examples of Revenue Expenditure because they do not create assets and do not reduce liabilities. Acquisition of land, machinery and investment in shares create assets, making them Capital Expenditure.