Advertisements
Advertisements
Question
What is capital expenditure?
Advertisements
Solution 1
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.
Solution 2
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.
RELATED QUESTIONS
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?
Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.
Expenditure on purchasing computers
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.
Distinguish between capital expenditure and revenue expenditure.
Capital expenditure is that estimated expenditure of the government which?
The expenditure multiplier is the ratio of ______.
Level of planned output coincides with planned expenditure when ______
Purchase of shares is related to ______
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
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.
Which of the following payments are included under Revenue Expenditure?
Capital Expenditure is defined as government expenditure that:
Loans and advances given to State Governments, Union Territories and Public Sector Undertakings (PSUs) are classified as:
Plan Capital Expenditure is described as expenditure that:
