A Budget Surplus Exists When

question 15

Multiple Choice

A budget surplus exists when

• A)Tax receipts < government expenditures + transfers.
• B)Tax receipts > government expenditures + transfers.
• C)Government expenditures − transfers > tax receipts.
• D)Government expenditures > transfers + tax receipts.

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Definitions:

Present Value

The valuation of an expected income stream determined by discounting the future income to its value in today's dollars.

Interest Expense

This is the cost incurred by an entity for borrowed funds, and it is typically reported on the income statement as a non-operating expense.

Premium Account

An account credited with the amount by which a security is issued above its par value, featuring benefits or terms superior to those of standard accounts.

Unearned Liability

An obligation that arises when a business receives payment for goods or services that have not yet been delivered or performed, also known as deferred revenue.