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Tuesday, 20 November 2018

Investment in public works is known as

  By GK Planet Team       Tuesday, 20 November 2018
Q. Investment in public works is known as
  1. capital expenditure
  2. current expenditure
  3. revenue expenditure
  4. either (a)or (b)
Answer: Capital Expenditure

Capital Expenditure

Capital expenditure or capital expense (capex or CAPEX) is the money a company spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof.
Investment in public works is known as Capital Expenditure

Current Expenditure

Current expenditure is recurring spending or, in other words, spending on items that are consumed and only last a limited period of time. They are items that are used up in the process of providing a good or service.

Revenue Expenditure

Revenue expenditures are for costs that are related to specific revenue transactions or operating periods, such as the cost of goods sold or repairs and maintenance expense.
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