Budget Deficits Reappeared in 2002 as a Result of a Number

question 13

Multiple Choice

Budget deficits reappeared in 2002 as a result of a number of factors.Those factors include all but

• A)an economic downturn due to the September 11, 2001 terrorist attack
• B)increased spending for Homeland Security efforts
• C)the financial costs associated with Operation Iraqi Freedom
• D)the increased cost of a barrel of oil from OPEC

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Definitions:

Acquisition Differential

The difference between the purchase price of a company and the fair market value of its identifiable net assets.

Exchange Rates

The rate for transforming one currency into another.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period of time.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, usually used in its financial reporting.