Question

Capital expenditure is that estimated expenditure of the government by which:

• A. Assets are increased
• B. Liability is decreased
• C. Assets and liabilities remain unchanged
• D. Depends on the budget value

Answer 1

Answer: (A), (B)

The correct options are
A

Assets are increased

B

Liability is decreased

Capital expenditures includes those expenditure which cause increase in the government assets and reduction in the liabilities.