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Consider the following-
Revenue receipts is divided into Tax and Non-Tax revenue.
  • Revenue expenditure is expenditure incurred for purposes other than the creation of physical or financial assets.
  • Capital expenditure is the expenditure of the government which result in creation of physical or financial assets or financial liabilities.
    Q. Which of the above statements is/are correct?
    • a)
      1 and 3 only
    • b)
      1 and 2 only
    • c)
      2 and 3 only
    • d)
      1,2 and 3
    • e)
      None of the above
    Correct answer is option 'B'. Can you explain this answer?
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    Most Upvoted Answer
    Consider the following- Revenue receipts is divided into Tax and No...
    The correct answer is 1 and 2 only.
    Key Points:
    Revenue Expenditure:
    • Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government. Hence, statement 2 is correct.
    • It relates to those expenses incurred for the normal functioning of the government departments and various services, interest payments on debt incurred by the government, and grants given to state governments and other parties.
    Revenue Receipts:
    • ?Revenue receipts are those receipts that do not lead to any liability on the government. They are therefore termed non-redeemable.
    • They are divided into tax and non-tax revenues. Hence, statement 1 is correct.
    • Direct taxes (personal income tax) and firms (corporation tax)
    • Indirect taxes like excise taxes (duties levied on goods produced within the country), customs duties.
    ?Capital Receipts:
    • ?The government also receives money by way of loans or from the sale of its assets.
    • Loans will have to be returned to the agencies from which they have been borrowed.
    • Thus they create liability. The sale of government assets, like the sale of shares in Public Sector Undertakings (PSUs) which is referred to as PSU disinvestment, reduces the total amount of financial assets of the government.?
    Capital Expenditure:
    • There are expenditures of the government which result in the creation of physical or financial assets or reduction in financial liabilities. Hence, statement 3 is incorrect.
    • This includes expenditure on the acquisition of land, building, machinery, etc.
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    Consider the following- Revenue receipts is divided into Tax and Non-Tax revenue. Revenue expenditure is expenditure incurred for purposes other than the creation of physical or financial assets. Capital expenditure is the expenditure of the government which result in creation of physical or financial assets or financial liabilities. Q. Which of the above statements is/are correct?a)1 and 3 onlyb)1 and 2 onlyc)2 and 3 onlyd)1,2 and 3e)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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    Consider the following- Revenue receipts is divided into Tax and Non-Tax revenue. Revenue expenditure is expenditure incurred for purposes other than the creation of physical or financial assets. Capital expenditure is the expenditure of the government which result in creation of physical or financial assets or financial liabilities. Q. Which of the above statements is/are correct?a)1 and 3 onlyb)1 and 2 onlyc)2 and 3 onlyd)1,2 and 3e)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Consider the following- Revenue receipts is divided into Tax and Non-Tax revenue. Revenue expenditure is expenditure incurred for purposes other than the creation of physical or financial assets. Capital expenditure is the expenditure of the government which result in creation of physical or financial assets or financial liabilities. Q. Which of the above statements is/are correct?a)1 and 3 onlyb)1 and 2 onlyc)2 and 3 onlyd)1,2 and 3e)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following- Revenue receipts is divided into Tax and Non-Tax revenue. Revenue expenditure is expenditure incurred for purposes other than the creation of physical or financial assets. Capital expenditure is the expenditure of the government which result in creation of physical or financial assets or financial liabilities. Q. Which of the above statements is/are correct?a)1 and 3 onlyb)1 and 2 onlyc)2 and 3 onlyd)1,2 and 3e)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
    Solutions for Consider the following- Revenue receipts is divided into Tax and Non-Tax revenue. Revenue expenditure is expenditure incurred for purposes other than the creation of physical or financial assets. Capital expenditure is the expenditure of the government which result in creation of physical or financial assets or financial liabilities. Q. Which of the above statements is/are correct?a)1 and 3 onlyb)1 and 2 onlyc)2 and 3 onlyd)1,2 and 3e)None of the aboveCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Banking Exams. Download more important topics, notes, lectures and mock test series for Banking Exams Exam by signing up for free.
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