wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Very short answer type question:
Why is repayment of loan a capital expenditure?

Open in App
Solution

Repayment of loan is a capital expenditure as it causes reduction in liabilities of the government. We know, capital expenditure refers to those expenditures which either creates assets for the government or causes reduction in liabilities of the government.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Evaluating Subscription
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon