Subnational (State and Local) Governments Account for Approximately 40 Percent

question 8

Multiple Choice

Subnational (state and local) governments account for approximately 40 percent of all government spending in the United States. This is a/an ________ proportion than in most other advanced industrialized democracies.

• A) much higher
• B) equal
• C) lower
• D) higher
• E) much lower

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Definitions:

Continuing Operations

The segments or activities of a business expected to continue for the foreseeable future, excluding any discontinued operations.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized or accounted for.

Conservatism

An accounting principle that dictates to recognize expenses and liabilities as soon as possible, but revenues and assets only when they are assured of being received.

Gross Profit Method

A technique used to estimate the amount of inventory a business has by applying the gross margin ratio to the cost of goods sold.