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

The correct answer is B. purchase of drugs

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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