Which of the Following Statements About the U

question 122

Multiple Choice

Which of the following statements about the U.S.national debt is not correct?

• A)The primary economic costs of the debt are being passed on to future generations.
• B)The primary burden of the debt is incurred when the deficit-financed activity takes place.
• C)The national debt represents both a liability and asset to future generations.
• D)Future generations will bear some of the debt burden when crowding out occurs.

Understand the application of different accounting conventions and principles.

Identify the constraints and qualitative characteristics as per GAAP.

Recognize the assumptions and conventions in accounting.

Distinguish the criteria for revenue recognition.

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Definitions:

Re-Credit

The process of restoring funds to an account, typically after a return or correction of a billing error.

Debtor

Under Article 9 of the Uniform Commercial Code, any party who owes payment or performance of a secured obligation, whether or not the party actually owns or has rights in the collateral.

Creditor

An individual or institution that lends money or extends credit to another, with the expectation of being repaid.

Stale Check

A check, other than a certified check, that is presented for payment more than six months after its date.