--%>

Revenue expenditure

Why payment of interest is treated as revenue expenditure?

Answer: Since it does not cause any decrease in the liability of government.

   Related Questions in Microeconomics

  • Q : Firms and Transaction Costs An

    An individual or organization which simultaneously purchases low and sells high in various markets is a/an: (i) Angel duster. (ii) Escalator. (iii) Arbitrageur. (iv) Finagler.  (v) Optimizer. Can someone please help me in find

  • Q : Consequence on inventories When planned

    When planned savings are bigger or smaller than planned investment, then what will be its consequence on inventories? Answer: It will raise or reduce the inventorie

  • Q : Define money Money : Money is what

    Money: Money is what money does. Or Money is something that is accepted as a medium of exchange and at similar time act as a store of value.

  • Q : Estimating N.I. by product by value

    Describe the steps taken in estimating N.I. by product/ value added technique? Answer: A) Classify all production units: Locate

  • Q : Maximized output level and zero

    When all production costs for a monopoly are fixed [MC =0], in that case economic profit: (i) falls when price is raised in the inelastic range of a demand curve. (ii) rises when price is cut in the inelastic range of

  • Q : Determine points where is most price

    Of all of the known ranges on given supply curves, the supply of tanks of dehydrated water is most price elasticity among: (i) point a and point b. (ii) point b and point c. (iii) point c and point d. (iv) point d and point e. (v) point e and point f.

    Q : Perfectly inelastic demand problem When

    When will an augment in supply entail a raise in price however no change in quantity?

  • Q : Infinity elasticity of demand within

    When price changes for fresh peaches don’t modify total revenue to peach farmers, then the price elasticity of demand for peaches: (w) constant beside a linear demand curve. (x) infinity (the demand curve is horizontal). (y) uni

  • Q : Income and Inferior Goods problem I

    I have a problem in economics on Income and Inferior Goods problem. Please help me in the following question. For a non-vegetarian, Spam is to filet the mignon as: (1) Luxury goods are to requirements. (2) Complementary goods are to substitute goods.

  • Q : Labor Union Goals economically

    Economically, the labor unions can be thought of as the: (i) encouraging competition between the workers for jobs. (ii) Rising the flexibility of nominal wages. (iii) Attempts to cartelize and unite the individual sellers of labor. (iv) Having a goal of the minimum un