--%>

Creation of assets or reduction of liability

Illustrate which budget expenses does not result in the creation of assets or reduction of liability. Give illustrations too.

E

Expert

Verified

Answer: Revenue Expenditure does not effect in creation of assets or reduction of liability. These expenditures are incurred for normal running of govt. departments and maintenance of services. For instance: salaries, old age pensions, interest payments, subsidies, grants and so on.

   Related Questions in Macroeconomics

  • Q : Estimating rational income How will you

    How will you treat the given in estimating rational income of India? Provide reasons for your answer. (i) The value of bonus shares received by the shareholders of a company.(ii) Interest received on loan pro

  • Q : Problem on rational consumption

    Whenever you dine at an “all-you-can-eat” buffet, the rational consumption prototype is to carry on eating till: (1) The restaurant goes bankrupt. (2) You have eaten as much food as it would encompass cost had you made your own meal at hom

  • Q : Determinants of transaction demand.

    With the help of graph discuss the determinants of transaction demand.

  • Q : Value added technique for national

    What is the alternative name of value added technique of estimating national income? The alternative name of value added technique of estimating national income is production method.

  • Q : Relationship between interest rate and

    What is the relationship among interest rate and bond prices? Is there any difference among T-Bills versus Corporate bonds in reaching your assessment? Whenever the stock market falls, where do you assume that most investor place their money and why?<

  • Q : International trade the most frequently

    the most frequently asked question on foreign direct invetment

  • Q : From the heterodox approach From the

    From the heterodox approach, what options does the enterprise have to produce more output? What impact do these options have on its cost structure?

  • Q : Greatest Consumer Surplus problem I

    I have a problem in economics on Greatest Consumer Surplus. Please help me in the following question. Usual Americans undoubtedly derive the greatest consumer surpluses from the: (i) Summer vacations. (ii) Jelly and Peanut butter. (iii) Gold jewellery

  • Q : Is sale of scooter is national income

    Describe whether the sale of old scooter is comprised in national income?

  • Q : Systems of note issue how many systems

    how many systems of note issue are there??