Identify the correct match.

A) Pension to retired government employees - Revenue Receipt

B) Purchase of Machinery in Railways - Capital Expenditure

Question

Question

This question was previously asked in

SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 11 Aug, 2023 Shift 4)

Answer 1

The correct answer is Only B.Key Points

The purchase of machinery in Railways is a Capital Expenditure as it involves the acquisition of a fixed asset that will be used over a period of time to generate revenue for the Railways.
Capital Expenditure refers to the expenditure incurred on acquiring or improving fixed assets such as land, buildings, machinery, etc.

Additional Information

Revenue Expenditure refers to the expenditure incurred on the day-to-day running of the business or government.
They are essentially the same as operating expenses (OPEX) because they comprise all of the costs necessary to cover the business's present operating costs.
Pension to retired government employees is a Revenue Expenditure as it is a recurring expense for the government.