Of the Following, Which Is the Largest Part of the United

question 74

Multiple Choice

Of the following, which is the largest part of the United States budget?

• A) foreign aid
• B) interest on the federal debt
• C) Social Security
• D) welfare

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Definitions:

Accrue Interest

The process of recognizing interest expense or income that has been incurred but not yet paid or received in cash.

Classified Balance Sheet

A detailed financial statement that separates assets and liabilities into current and long-term categories, providing a clearer picture of a company's financial position.

Effective Interest Rate

The realized return on a bond or loan, taking into account the effect of compounding interest as opposed to the nominal rate.

Amortization

The process of spreading out a loan or intangible asset cost over its useful life, thereby reducing it on the balance sheet over time.