Identify the correct match.
A) Pension to retired government employees - Revenue Receipt
B) Purchase of Machinery in Railways - Capital Expenditure
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Only B.
The correct match is:
B) Purchase of Machinery in Railways - Capital Expenditure
Explanation:
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A) Pension to retired government employees - Revenue Receipt: This statement is incorrect. Pension payments are considered a revenue expenditure, not a revenue receipt. Revenue expenditure refers to spending that is recurring and covers day-to-day expenses, while revenue receipts are incomes that the government receives from taxes and other sources.
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B) Purchase of Machinery in Railways - Capital Expenditure: This statement is correct. The purchase of machinery in railways is considered capital expenditure because it involves buying long-term assets (like machinery) that will be used for many years and not for regular operational costs.
So, the correct answer is only B.