An Argument Has Been Made That the Shrinking Deficits of the 1990s

question 63

Multiple Choice

An argument has been made that the shrinking deficits of the 1990s were attributable to the

• A)Cold War.
• B)Gulf War.
• C)bailout of the savings and loans.
• D)peace dividend that resulted from the end of the Cold War.

---

Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before expenses.

Single-Step Income Statement

An income statement format that calculates net income using a single subtraction of total expenses from total revenue.

Fiscal Year

A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting, which does not necessarily coincide with the calendar year.

Ledger Adjustments

Entries made in the general ledger to correct errors, update account balances, or reallocate funds across accounts.