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Which of the following is not a characteristic of a capital expenditure, for the purposes of...

Which of the following is not a characteristic of a capital expenditure, for the purposes of government budgeting?

a. recurring nature

b. large price tag

c. long life

d. none of the above

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Answer #1

Ans. The correct option is

A. Recurring nature : It refers to the type of nature in which a particular thing keeps on repeating ie the expenditure keeps on repeating.

Since capital expenditure is not at all recurring in nature , thus it is not the characteristic of capital expenditure.

Other options are

B. Large price tag : In other words it can be said the large MRP of a particular item. It is the characteristic of capital expenditure.

C. Long life : The capital exepnditure has a long life thus it is also the characteristic .

D. None of the above : since the 1st option is correct, so this is definitely a wrong choice.

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