The Largest Source of Revenue for the Federal Government Is

question 226

Multiple Choice

The largest source of revenue for the federal government is ________ and the largest outlay is for ________.

• A) corporate taxes; Social Security
• B) personal income taxes; Medicare
• C) personal income taxes; interest on national debt
• D) personal income taxes; transfer payments

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect those that are expected to go uncollected.

Uncollectible

Accounts receivable that cannot be recovered or are very unlikely to be paid by debtors.

Income Statement Approach

An analytic method focusing on revenues and expenses to determine the net income of a business within a specific period.