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:

Banker

A professional in the banking industry who deals with the management, operation, and provision of banking services to consumers and businesses.

Contra Asset Account

This is an account used in financial accounting to offset the balance of a related asset account, increasing the overall accuracy of the company's financial statement.

Accumulated Depreciation

The sum of all depreciation expenses allocated for a physical asset from the time it was first utilized.

Depreciation Expense

The systematic write-off of the cost of a tangible asset over its useful life.