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Payment of loan by the government is an example of _____________.
revenue expenditure
revenue receipts
capital receipts
capital expenditure
- Revenue Expenditure: These are short-term expenses used to manage daily governmental operations. They don't create assets or reduce liabilities, such as salaries or subsidies.
- Revenue Receipts: These are earnings that don't affect assets or liabilities, like taxes or fines. They are regular income for the government.
- Capital Receipts: These increase liabilities or decrease assets. This could include loans taken or disinvestment earnings.
- Capital Expenditure: These are long-term outlays that create assets or reduce liabilities, like infrastructure spending or loan repayments.
- Correct Answer: ? Capital Expenditure. Government loan repayment reduces liabilities, making it a capital expenditure.
By: santosh ProfileResourcesReport error
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