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WAEC Financial Accounting 1998 Question 32

Question 32

Public Sector Accounting

Which of the following is a recurrent expenditure to a Local Government Council?

  1. A.Building classrooms
  2. B.Sinking of wells
  3. C.Purchase of drugs
  4. D.Construction of markets
  5. E.Purchase of hospital beds.
Show the answer and explanation

Answer: C (Purchase of drugs)

Explanation

Drugs are used up in the year, so they are recurrent spending; the others create lasting assets.