If Net Taxes Are Less Than Government Outlays,the Government Sector

question 5

Multiple Choice

If net taxes are less than government outlays,the government sector has a budget ________ and government saving ________.

• A) surplus; is positive
• B) deficit; cannot be used for discretionary fiscal policy
• C) deficit; is negative
• D) None of the above answers is correct.

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Definitions:

Income Taxes Payable

A liability on a company's balance sheet representing the amount of taxes owed to governmental authorities that have not yet been paid.

Net Income

The total profit of a company after subtracting all expenses, including taxes, from its total revenues.

IFRS Categories

Classifications under the International Financial Reporting Standards that dictate the presentation and disclosure of financial information in the financial statements.

Cash Flows

The sum of funds being moved in and out of a company, particularly influencing its ability to meet short-term obligations.