either increases assets or reduces liability.

Revenue receipt

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Capital receipt

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Revenue expenditure

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Capital expenditure

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Solution

The correct option is D Capital expenditure
An expenditure which either creates an asset (e.g., school building) or reduces liability (e.g., repayment of loan) is called capital expenditure.

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Similar questions

Which among the following statement(s) is/ are correct?

Codes :

________________ either increases assets or reduces liability.

Any transaction which either increases liability or decreases assets is a ____________.

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