Which of the Following Are Government Expenditures That Exceed Receipts

question 34

Multiple Choice

Which of the following are government expenditures that exceed receipts?

• A) Upturns
• B) Inflation
• C) Surpluses
• D) Deficits
• E) Rebates

---

Definitions:

Incremental Cash Flows

Additional cash flows from a new project or investment, considered when evaluating the financial viability of that project.

Stand-alone Principle

An approach to evaluating investment decisions without considering any potential impacts from external projects or operations.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not affect future investment decisions.

Depreciation Cost

The allocated portion of an asset's initial cost over its useful life, recognized as an expense on financial statements.