If Government Spending Exceeds Government Receipts,the Government Has a

question 101

Multiple Choice

If government spending exceeds government receipts,the government has a

• A)budget surplus.Other things the same,the surplus rises if taxes rise.
• B)budget surplus.Other things the same the surplus rises if taxes fall.
• C)budget deficit.Other things the same,the deficit rises if taxes rise.
• D)budget deficit.Other things the same,the deficit rises if taxes fall.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset, which spreads the cost of the asset evenly over its useful life.

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or face value.

Discount on Bonds Payable

The gap between a bond's face value and its market selling price, occurring when the bond sells below its nominal value.

Straight-Line Amortization

A method of reducing the carrying amount of an intangible asset over its useful life in equal amounts.