Of the Following,the Largest Single Component of U

question 23

Multiple Choice

Of the following,the largest single component of U.S.federal government expenditures is spent on

• A) interest paid on the national debt.
• B) Medicare and Medicaid.
• C) national defense.
• D) purchases of goods and services for purposes other than national defense.
• E) transfers to state and local governments.

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Definitions:

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity, such as stocks, bonds, or derivatives.

FASB

The Financial Accounting Standards Board, which is responsible for establishing and improving financial accounting and reporting standards in the United States.

IASB

The International Accounting Standards Board, an independent body that establishes and approves accounting standards.

Allowance For Doubtful Accounts

An accounting concept referring to a reserve for accounts receivable that may not be collectible.