Should the following be treated as final expenditure or intermediate expenditure? Give reasons for your answer. |
(i) Purchase of furniture by a firm. |
(ii) Expenditure on maintenance by a firm. |
Answer:
(i) Purchase of furniture by a firm is a final expenditure because firm does not invest on the furniture daily. So it is a kind of investment. (ii) Expenditure on maintenance by a firm is an intermediate expenditure because it occurs again and again and is not of permanent nature.
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