Which of the Following Is Not Correct

question 151

Multiple Choice

Which of the following is not correct?

• A) A potential cost of deficits is that they reduce national saving,thereby reducing growth of the capital stock and output growth.
• B) Deficits give people the opportunity to consume at the expense of their children,but they do not require them to do so.
• C) The U.S.debt per-person is large compared with average lifetime income.
• D) In 2005,the U.S.government ran a deficit.

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Definitions:

Recognition Principles

The criteria and rules that govern when and how revenue and expenses are recognized in the accounting period they occur.

Expenses

Costs incurred by a business in the process of earning revenues, including operational costs, rent, utilities, and employee salaries.

Comprehensive Business Reporting

A holistic approach to reporting that combines financial, social, and environmental performance indicators to give stakeholders a more complete view of a company's activities and impact.

CFA

Chartered Financial Analyst, a professional designation given by the CFA Institute to finance and investment professionals.