Net Interest Spending Consists Of

question 11

Multiple Choice

Net interest spending consists of:

• A) interest payments on commercial debt held by the government.
• B) interest payments on foreign debt held by the government.
• C) interest payments on government debt held by the public.
• D) all of the above

---

Definitions:

Accruals

Accounting method recognizing revenue when earned and expenses when incurred, regardless of when cash transactions occur.

Doubtful Accounts

Receivables that a company is unlikely to collect, representing amounts owed by customers that might eventually be written off as bad debts.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.