Q18 of 30 Page 1

What is revenue expenditure?

The government expenditure which does not create any assets for the government and does not reduce the liability of the government is called revenue expenditure. Therefore, subsidies are treated as revenue expenditure as they do not reduce the liability of the government and do not add to the assets of the government.


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16

Define stocks.

 17

Depreciation of fixed capital assets refers to :(choose the correct alternative)

(a)Normal wear and tear


(b)Foreseen obsolescence


(c)Normal wear and tear and foreseen obsolescence


(d)Unforeseen obsolescence


 19

Fiscal deficit equals : (choose the correct alternative)

(a)Interest payments


(b)Borrowings


(c)Interest payments less borrowing


(d)Borrowing less interest payments


 20

Foreign exchange transactions dependent on other foreign exchange transaction are called: ( choose the correct alternative)

(a)Current account transactions


(b)Capital account transactions


(c)Autonomous transactions


(d)Accommodating transaction