Using the extract below from the Capital Profile for the new campus, answer the following questions. (Note. The figures entered are correct)

HOTSPOT

Using the extract below from the Capital Profile for the new campus, answer the following questions. (Note. The figures entered are correct).

Answer: Explanation:

A. True, AND the reason explains the assertion. Operating costs are indeed revenue costs rather than capital costs and should not be included in the Capital Profile.

B. True, BUT the reason does not explain the assertion. The income from grants should not be shown on the Capital Profile if they are intended to support operating costs, which should be part of an Income and Expenditure Account. However, capital grants used for capital expenditures could be included in the Capital Profile.

E. False, False. There is no funding gap of $810,000. The Total Funding matches the Total Spend over the five years, as shown in the table.

A. True, AND the reason explains the assertion. Receipts from the sale of the school would typically be considered as contributing to the funding of capital costs for construction, aligning with the accountancy treatment of recognizing proceeds from asset disposal.