The Largest Portion of the Increase in the Budget Deficits

question 286

Multiple Choice

The largest portion of the increase in the budget deficits in 2009 and 2010 can be attributed to

• A)the surpluses from the Social Security trust fund will begin to diminish.
• B)the surpluses from the Medicare trust fund will being to diminish.
• C)the baby boomers will begin to retire and begin to collect Social Security and Medicare.
• D)the tax rebate and TARP passed in 2008,the stimulus package passed in 2009 and the lingering unemployment as a result of the Great Recession.

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Definitions:

Initial Record

Initial record refers to the first entry of a transaction into the accounting system. This record is crucial for maintaining the accuracy and integrity of financial data.

Perpetual Inventory

An inventory management system that updates item records on a continuous basis as transactions occur, providing real-time inventory levels.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in accounting to determine inventory costs.

Cost Flow Assumption

An accounting assumption used to value and manage inventory by determining the cost of goods sold and ending inventory.