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Government Budget: Receipts & Expenditure · Question 46 of 57

Question 46

MediumOriginal question

Read the two statements and choose the correct option.

I. Subsidies are capital expenditure.

II. Repayment of borrowings is capital expenditure.

Options for question 46

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Subsidies create no asset and reduce no liability: revenue expenditure. I is false.

  2. Repayment reduces a liability. II is true.

Concept
Subsidies and repayment
Typical time
70 s
Your time
—
The rule this testsRevenue and capital expenditure
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Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

Practise this chapter →

Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

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