Question

Statement (1): Revenue expenditure is non-recurring.

Statement (2): Capital expenditure is recurring.

Options

• Both statements are true.

• Both statements are false.

• Statement 1 is true but Statement 2 is false.

• Statement 2 is true but Statement 1 is false.

Answer 1

Both statements are false.

Explanation:

Both concepts completely reverse their actual economic characteristics. Revenue expenditures are normal, day-to-day operational costs that are intrinsically recurrent, whereas capital expenditures are long-term, asset-building investments that are completely non-recurring.