Archive | Expenditure

3 Main Characteristics of Expenditure Flows

The following points highlight the three main characteristics of expenditure flows. The characteristics are: 1. Real Expenditures 2. Planned Values 3. Aggregate Flows. Characteristic # 1. Real Expenditures: The theory of income determination is based on the concept of real/not nominal (monetary) expenditures. We have noted earlier that national income and its various components can be measured either at current, [...]

By Samia Rekhi|2016-05-16T07:49:12+05:30May 16, 2016|Expenditure|Comments Off

Revenue Expenditure and Capital Expenditure of India (Notes)

Revenue Expenditure and Capital Expenditure of India! An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. If it creates an asset or reduces a liability, it is categorised as capital expenditure. This is the basis of classification between revenue expenditure and capital expenditure. (a) Revenue Expenditure: Simply put, an expenditure which neither creates assets [...]

By J.Singh|2015-08-18T09:03:09+05:30February 15, 2014|Expenditure|Comments Off