To Say That "The U

question 55

Multiple Choice

To say that "the U.S.public debt is mostly held internally" is to say that

• A)only interest payments on the public debt are an economic burden.
• B)official figures understate the size of the public debt.
• C)the bulk of the public debt is owned by U.S.citizens and institutions.
• D)the public debt is equal to the land and building assets owned by the federal government.

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Definitions:

Fair Market Value

The price that an asset would sell for in a transaction between willing participants under no compulsion to buy or sell.

Recorded Value

The value of an asset or liability as noted in the financial records or books of an organization.

Endowment Contribution

A donation made to an institution, with the stipulation that the principal amount must be maintained intact while the investment income can be used for organizational purposes.

Deferral Method

An accounting practice that postpones the recognition of revenue or expenses to a future period, rather than recording them in the period in which they are incurred.