Why Does the Government Not Have to Repay Debt, as Do

question 189

Multiple Choice

Why does the government not have to repay debt, as do private individuals?

• A)Because the government can ignore creditors and refuse payment.
• B)Because the government, as a dictatorship, is unresponsive to demands for repayment.
• C)Because the government has no debt; it owes it to itself.
• D)Because the government does not have a finite life, as do individuals.

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Definitions:

Merchandise Inventory Turnover

A measure of how many times a company’s inventory is sold and replaced over a specific period.

Inventory Management

The process of ordering, storing, and using a company's inventory, including raw materials, components, and finished products.

Periodic Inventory System

A method of inventory valuation wherein updates and cost of goods sold calculations are made at set intervals, not continuously.

Accounting Features

Characteristics or functionalities of accounting systems or software that help in recording, tracking, and analyzing financial transactions.