Which of the Following Statements Is Incorrect

question 60

Multiple Choice

Which of the following statements is incorrect?

• A)Budget deficits raise the national debt.
• B)The concepts of deficit and debt are closely related.
• C)Getting rid of the deficit eliminates accumulated debt.
• D)Budget surpluses lower the national debt.

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Definitions:

Contributions Revenues

Contributions revenues are the funds received by nonprofit organizations, governments, or other entities as donations or grants that do not have to be repaid.

Donor Restrictions

Limitations placed by a donor on how a non-profit organization can use the donated funds.

Animal Rescue Agency

An organization dedicated to rescuing and caring for animals in distress or peril.

ASU 2016-14

An update issued by the Financial Accounting Standards Board (FASB) aimed at improving the way not-for-profit organizations present their financial statements.