Question 41
MediumOriginal questionMatch each spending with its type.
| List I | List II |
|---|---|
| A. Salaries of government teachers | I. Revenue expenditure on debt |
| B. Building a new highway | II. Capital expenditure: reduces a liability |
| C. Interest paid on government debt | III. Capital expenditure: creates an asset |
| D. Repayment of a loan taken from the World Bank | IV. Revenue expenditure |
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Salaries and interest create no asset and reduce no liability; a highway is an asset; repaying a loan cuts a liability.
- Concept
- Classifying expenditure
- Typical timeTypical
- 90 s
- Your timeYours
- —
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Ten questions from Government Budget: Receipts & Expenditure, at your own pace.