English

Construction of railway line is a type of ______ expenditure. -

Advertisements
Advertisements

Question

Construction of railway line is a type of ______ expenditure.

Options

  • Capital

  • Revenue

  • Primary

  • All of these

MCQ
Fill in the Blanks

Solution

The construction of railway lines is a type of Capital expenditure.

Explanation:

Railway track construction is a capital expenditure since it creates an asset. Capital expenditure is an expenditure that either develops assets for the government or reduces the government's liabilities. Any one of the aforementioned conditions must be met for capital expenditure to occur, hence it refers to spending that results in the production of assets and the reduction of obligations. This type of investment is made over a long period of time.

shaalaa.com
Classification of Expenditure
  Is there an error in this question or solution?
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×