Assertion (A): Spending on building a government hospital is capital expenditure.
Reason (R): It creates a lasting asset for the government.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Expenditure that creates assets is capital expenditure. R explains A.

Concept: Building assets
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsRevenue and capital expenditure

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Assertion (A): Spending on building a government hospital is capital expenditure.Reason (R): It creates a lasting asset for the government.

Explanation

Assertion (A): Spending on building a government hospital is capital expenditure.
Reason (R): It creates a lasting asset for the government.