Question

Which of the following is/are correctly matched?

$\begin{array}{cc}\text{1. Borrowings by the government}& \text{a. Capital Receipt}\\ \text{2. Recovery of loans}& \text{b. Revenue Receipt}\\ \text{3. Customs duty}& \text{c. Capital Expenditure}\\ \text{4. Construction of roads}& \text{d. Revenue Expenditure}\end{array}$

• A. 1 - a, 2 - a, 3 - b, 4 - a
• B. 1 - a, 2 - a, 3 - b, 4 - c
• C. 1 - d, 2 - c, 3 - b, 4 - d
• D. 1 - b, 2 - c, 3 - b, 4 - c

Answer 1

The correct option is B

1 - a, 2 - a, 3 - b, 4 - c

Out of the given options, borrowings and recovery of loans impact the balance sheet and are capital receipts. Customs duty is a revenue receipt and construction of roads is a capital expenditure.