Which of the Following Would Not Be Classified as an Expenditure

question 61

Multiple Choice

Which of the following would not be classified as an expenditure?

• A) Salaries and wages.
• B) Depreciation.
• C) Capital outlay.
• D) Debt service - principal and interest.

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Definitions:

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account; also refers to the provision of resources based on a trust agreement.

Sales Tax

A tax imposed by governments on the sale of goods and services.

Total Revenue

The entire amount of income generated by the sale of goods, services, or other financial assets before any deductions are made.

Culture of Poverty

A concept in social theory that suggests that poverty is not a result of individual inadequacies but is instead the outcome of a larger social and cultural atmosphere that perpetuates and sustains poverty.