When the Federal Government Attempts to Tackle a Problem, Such

question 24

Multiple Choice

When the federal government attempts to tackle a problem, such as assisting the poor, the sick, or the aged, it is acting:

• A) under its constitutional power to provide order.
• B) under its constitutional power to promote the general welfare.
• C) through powers specified in the supremacy clause of the U.S. Constitution.
• D) through powers specified in the Bill of Rights.
• E) through powers specified in the Declaration of Independence.

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Definitions:

Net Income

The company's net income following the deduction of all costs and taxes from the total income.

Income Summary

An account to which the revenues and expenses are transferred in order to close the books; it reflects the net income or loss at the end of a period.

Owner's Capital Account

An account on a company's balance sheet that represents the owner's investment and retained earnings in the business.

Credit Balance

This represents the amount that a company or individual owes to creditors; in accounting, it indicates a balance on the right side of a ledger.