WAEC - Accounts Principles Of Accounts (2013 - No. 27)

Which of following is a recurrent expenditure in public sector accounting?
purchase of vehicles
purchase of drugs
construction of bore holes
construction of buildings

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).

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