The public expenditure in India is classified as capital and revenue. Which of the following is/are…
Subsidies, interest and ordinary wages/salaries are current revenue expenditures rather than acquisition of assets or reduction of liabilities. Each pairwise code omits…
Choose your answer
The public expenditure in India is classified as capital and revenue. Which of the following is/are revenue expenditure?
- (i) Subsidies
- (ii) Interest payments on public debt
- (iii) Wages and salaries
Answer and explanation
Correct answer D
Subsidies, interest and ordinary wages/salaries are current revenue expenditures rather than acquisition of assets or reduction of liabilities. Each pairwise code omits another revenue item. Wages directly capitalized into a construction asset can require a different accounting treatment, but ordinary current payments are intended.
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UGC NET Economics