Which of the following is a common misconception?

Type: MCQ • Marks: 1

A. Capital expenditure can create enduring capacity

B. Revenue expenditure supports current operations

C. Capital expenditure is always non-recurring and revenue expenditure is always recurring

D. Classification depends on the nature and purpose of expenditure

Explanation

Recurrence alone does not determine classification. The substance and applicable accounting principles matter.

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UPSC Principal & Vice Principal Management Finance Administration

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