Which of following is a recurrent expenditure in public sector accounting?
-
A.
purchase of vehicles -
B.
purchase of drugs -
C.
construction of bore holes -
D.
construction of buildings
Correct Answer: Option B
Explanation
Recurrent expenditure on goods and services is expenditure, which does not result in the creation or acquisition of fixed assets (new or second-hand). It consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation).