In public sector accounting, salaries of employees are classified as
Answer Details
In public sector accounting, salaries of employees are classified as recurrent expenditure. Recurrent expenditure refers to regular and routine expenses incurred by an organization in carrying out its day-to-day activities. These expenses are incurred repeatedly and are necessary for the normal functioning of the organization.
Salaries of employees are a type of recurrent expenditure as they are paid regularly, such as monthly or bi-weekly, to compensate employees for their services. This is in contrast to capital expenditure, which refers to the costs incurred for acquiring and improving assets such as land, buildings, and equipment.
Therefore, since salaries are a routine and regular expense necessary for the day-to-day operations of an organization, they are classified as recurrent expenditure in public sector accounting.