Question 31
EasyOriginal questionWhich of these is a capital receipt?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
When a loan is repaid, the government's asset (the loan) falls, so the receipt is a capital receipt.
Interest on that loan, though, is a revenue receipt.
Worth noting
Interest and the repayment of the loan itself are classed differently: interest is revenue, repayment is capital.
- Concept
- Recovery of loans
- Typical timeTypical
- 40 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Government Budget: Receipts & Expenditure, at your own pace.