Q18 · Practice questionSimple familiar1 mark
QUESTION 18
The construction of a government-owned rail line is generally classified as
(A)
capital expenditure.
(B)
a transfer payment.
(C)
direct taxation.
(D)
current expenditure only.
WORKED SOLUTION
1 markAnswer A
Answer
A
Working
The project creates a durable public asset used over several years. That makes its construction capital expenditure, distinct from routine operating costs.
Marking criteria
- Select A. [1 mark]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
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