Ultimately, the Real Burden of Paying for Social Security Benefits

question 46

Multiple Choice

Ultimately, the real burden of paying for Social Security benefits will be paid for by

• A) taxes levied on workers.
• B) Social Security trust fund bonds.
• C) new federally issued Treasury bills.
• D) a new tax levied on businesses.

---

Definitions:

Prepaid Revenue

Income received by a company for goods or services to be delivered or performed in the future, recorded as a liability on the balance sheet until earned.

Depreciation Expense

The allocated amount of the cost of a tangible or physical asset over its useful life, reflecting the decrease in the asset’s value due to use and/or age.

Correction Of An Error

Adjustments made in financial statements to amend mistakes or omissions in previously issued financial reports.