Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

"Purchase of share is related to capital receipt"

Which of the following options is true in regards to the above statement?

Options:

The statement is true

The statement is false

The statement is partially true 

Can't say anything about the statement

Correct Answer:

The statement is false

Explanation:

The statement stated above is false as purchase of shares causes an increase in the assets, which means it will be counted under capital expenditure.

Capital expenditure is the expenditure which cause an increase in assets or reduction in the liability.