Question

___________ refers to that expenditure which either increases an ________ or ________ liabilities of the government.
i. Capital expenditure ii. Asset, reduces iii. Capital Expenditure, Increase iv. Reduce Identify the correct answer/s from the following:

[0.80 marks]

• A. i and ii
• B. i and iii
• C. ii and iii
• D. iii and i

Answer 1

The correct option is A i and ii

Capital expenditure refers to that expenditure which either creates an asset or reduces liabilities of the government.