Mandatory Outlays Are Different Than Discretionary Outlays Because

question 17

Multiple Choice

Mandatory outlays are different than discretionary outlays because

• A) mandatory outlays usually change during the budget process,whereas discretionary outlays do not.
• B) mandatory outlays have been decreasing as a percentage of the federal budget,whereas discretionary outlays have been increasing as a percentage of the federal budget.
• C) discretionary outlays can be changed during the annual budget process,whereas mandatory outlays cannot.
• D) discretionary outlays include entitlement programs (such as Social Security and Medicare),whereas mandatory outlays include important government programs (such as defense).
• E) discretionary outlays comprise the vast majority of the total budget,whereas mandatory outlays make up only a minor fraction.

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Definitions:

FASB Justifications

Rationales and explanations provided by the Financial Accounting Standards Board for its accounting standards and practices.

Carrying Value

Also known as book value, it's the value of an asset or liability according to a company's balance sheet, factoring in depreciation and amortization.

Economic Benefits

The gains received by individuals or organizations from their economic activities.

Verifiability

A principle ensuring that financial information can be checked for accuracy, reliability, and impartiality by independent observers.