Which of the Following Is NOT a Distinction Between Capital

Multiple Choice

Which of the following is NOT a distinction between capital and operating expenses?

A) Borrowing is typically used to finance capital items while taxes and user fees are mostly used to finance operating expenditures.
B) Taxes and user fees are mostly used to finance day-to-day expenses while capital projects are expected to have a long useful life.
C) The federal government does not divide the budget into separate parts, (operating expenses and capital investments) while most state and local governments do.
D) All of the above are distinctions between capital and operating expenses.
E) None of the above are distinctions between capital and operating expenses.