If the Government Runs a Deficit, the Total Amount of Government

question 114

Multiple Choice

If the government runs a deficit, the total amount of government debt is

• A) decreasing.
• B) constant.
• C) zero.
• D) increasing.

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Definitions:

Unearned Revenue

Revenue received by a company for goods or services that are yet to be delivered or performed.

Cash

Money in the form of currency that is used to conduct transactions.

Reversing Entries

Journal entries that are recorded on the first day of the next period that are the exact opposite of the related adjusting entry from the last day of the prior period.

Adjusting Entries

Accounting records entries documented at the conclusion of an accounting cycle to distribute revenues and expenses to the period they genuinely took place.