Which of following is a recurrent expenditure in public sector accounting?

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).

You May Also Like