Categorize the following into revenue expenditure and capital expenditure by giving the reason: (i) Subsidies. (ii) Grant given to state government. (iii) Repayment of loans. (iv) Construction of railway lines.

Dear Student

(i) Subsidies-Revenue expenditure as it neither affect assets nor liability. 
(ii) Grant given to state government- Revenue expenditure as it neither affect assets nor liability.
(iii) Repayment of loans-Capital  expenditure, as it decreases liability.  
iv) Construction of railway lines- Capital expenditure because they are expected to be productive assets for a long period of time.

Regards