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Which of the following is an example of revenue expenditure?

APurchase of a new machine for production

BConstruction of a new factory building

CPayment of salaries to government employees

DRepayment of a loan taken for capital investment

Answer:

C. Payment of salaries to government employees

Read Explanation:

  • Revenue expenditure is spending that doesn't create assets or reduce liabilities for the government.

  • Salaries, pensions, and interest payments are all recurring, day-to-day operational expenses.


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