A Budget Deficit Would Result When a Person's or Family's

question 19

Multiple Choice

A budget deficit would result when a person's or family's:

• A)actual expenses are less than planned expenses.
• B)actual expenses are greater than planned expenses.
• C)actual expenses equal planned expenses.
• D)assets exceed liabilities.
• E)net worth decreases.

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Definitions:

Journal Entries

The method by which financial transactions are recorded in a company's accounting records in chronological order.

Cash

Liquid funds available for use in immediate transactions, held either in hand or in bank accounts.

Earnings Per Share

A measure of a company's profitability that calculates the amount of net income earned for each share of its common stock.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a period.