Question

The main difference between Revenue Receipts and Capital Receipts is that Capital Receipts:

• A. Are recurring and do not affect the government's assets or liabilities.
• B. Are recurring and affect the government's assets or liabilities.
• C. Are not recurring and do not affect the government's assets or liabilities.
• D. Are not recurring and affect the government's assets or liabilities.

Answer 1

Answer:

D. Are not recurring and affect the government's assets or liabilities.

• Capital receipts are typically non-recurring and either increase the government's liabilities (e.g., loans) or reduce its assets (e.g., disinvestment).