When a Government Fails to Balance Its _______, It Has

question 15

Multiple Choice

When a government fails to balance its _______, it has to borrow money by issuing ______ in order to make up the shortfall.

• A) bonds, budget
• B) budget, bonds
• C) sheet, stocks
• D) act, paper

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Definitions:

Net Assets

The total assets of a company minus all of its liabilities, representing the owners' equity.

Liabilities

Obligations of a company or organization due to past transactions or events, resulting in the future sacrifice of economic benefits.

Stockholders' Equity

The ownership interest of shareholders in the assets of a corporation, after all liabilities have been subtracted.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received, representing short-term liabilities.