Why Do Social Security and Medicare Pose Problems for the Federal

question 108

Multiple Choice

Why do Social Security and Medicare pose problems for the federal government budget?

• A) The number of workers who can pay for the retirees is increasing.
• B) Payroll taxes are capped and cannot be raised.
• C) The number of retirees is decreasing.
• D) The number of sick people is rising too quickly.
• E) Life expectancy of retirees is increasing.

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Definitions:

Fees Accrued

Accrued fees are costs that have been incurred for services but have not yet been paid by the end of an accounting period.

Supplies Account

This is an account used in accounting to track the costs of supplies used in the operation of a business during an accounting period.

Wages Accrued

A liability representing wages earned by employees that have not yet been paid by the employer.

Rent Earned

Income received by a property owner when they lease out a property to a tenant.