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

Assessment: WAEC SSCE - Financial Accounting - 1998 (Objective) Subject: Financial Accounting

Question 1 Report

Which of the following is a recurrent expenditure to a Local Government Council?
Answer Details
The recurrent expenditures of a Local Government Council are the regular or routine expenses that it incurs to keep its operations running. Out of the options given, "purchase of drugs" is the only one that fits the definition of a recurrent expenditure. This is because a Local Government Council would need to regularly purchase drugs to supply its health facilities and clinics, which is an essential service it provides to the community. The other options, such as building classrooms, sinking wells, constructing markets, and purchasing hospital beds, are capital expenditures, which are one-time expenses incurred to acquire or improve assets.

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