Which of the Following Is True Regarding the "American Recovery

question 42

Multiple Choice

Which of the following is true regarding the "American Recovery and Reinvestment Plan"?

• A)The massive 2009 stimulus package was designed to jump-start the recession-bound economy.
• B)Critics argued that the massive deficits generated by President Obama's plan would undermine America's financial stability.
• C)Critics argued that in order to pay the deficits created by the plan,the government would be forced to raise taxes and cut spending,which would reverse the boost from the stimulus.
• D)All of the choices are correct.

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Definitions:

Non-Controlling Interest

An ownership interest in a subsidiary held by investors other than the parent company, reflecting their share of the equity and earnings of the subsidiary.

Consolidation Adjustments

Modifications made to combine the financial statements of parent and subsidiary companies into a single set of statements.

Equity

The residual interest in the assets of the entity after deducting all its liabilities.

Pre-Acquisition Entry

An accounting entry made to adjust the values of the acquiree's assets and liabilities to their fair values at the acquisition date before they are consolidated.