Which of following is a recurrent expenditure in public sector accounting?
A. purchase of vehicles B. purchase of drugs C. construction of bore holes D. construction of buildings
Correct Answer: B
Explanation
Recurrent expenditure on goods and services is expenditure, which does not result in the creation or acquisition of fixed assets (new or second-hand). It consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation).
