The Following Questions Refer to the Excerpt Below

question 31

Multiple Choice

The following questions refer to the excerpt below.
"Well,there is no magic money machine.Every dollar the government spends comes out of your pockets.Every dollar the government gives to someone has to first be taken away from someone else.So,it's our moral duty to make sure that we can justify every one of your tax dollars,that we spend them wisely and carefully and,just as important,fairly.
Unfortunately,hardly anyone could honestly call Federal budgets wise,careful,or fair.Is it fair to ask one small business to help subsidize its competitors? Is it fair to ask workers in the private economy to pay for civil service pensions that are much more generous than the retirement benefits they receive? Is it fair to ask low-income families to help pay for the college education of children from families with incomes as high as $100,000 a year? Is it fair to ask taxpayers to help pay billions for export subsidies to a handful of America's biggest corporations?"
President Ronald Reagan,Address to the Nation on the Federal Budget and Deficit Reduction,April 24,1985
-Which of the following actions of the Reagan administration best reflects the ideas expressed in the excerpt?

• A) Deregulation of many industries, such as the breakup of AT&T
• B) Increased military spending
• C) Achievements in nuclear arms reductions
• D) The creation of Social Security

---

Definitions:

Understated

Describes a financial statement element that is reported at a figure less than its actual value, potentially misleading users of the statements.

Ending Inventory

Ending inventory is the total value of goods remaining in stock at the end of an accounting period, used to calculate cost of goods sold and gross profit.

Ending Inventory

The ultimate worth of merchandise up for sale at the termination of a fiscal period.

Overstated

A situation where the reported value or figures are higher than the true or accurate value, often unintentionally.