Assertion (A): Salaries paid to doctors in a government hospital are capital expenditure.
Reason (R): The hospital building is a capital asset of 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 D

Correct answer: D

R is true: the building is an asset.
But salaries create no asset and reduce no liability, so they are revenue expenditure. A is false.

Concept: Running costs versus assets
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsRevenue and capital expenditure

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Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

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Assertion (A): Salaries paid to doctors in a government hospital are capital expenditure.Reason (R): The hospital building is a capital asset of the government.

Explanation

Assertion (A): Salaries paid to doctors in a government hospital are capital expenditure.
Reason (R): The hospital building is a capital asset of the government.