Statement 1: in 2002 and 2003,state After State Slashed Services

question 7

Multiple Choice

Statement 1: In 2002 and 2003,state after state slashed services and raised taxes.
Statement 2: Through the 1970s,the 1980s,and the 1990s,state governments ran substantial budget deficits.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

---

Definitions:

Owner's Drawings Account

An equity account that tracks the amounts withdrawn by the owner(s) of a business from the company for personal use.

Right Side

In accounting, this refers to the credit side of a ledger account, opposite of the left side (debit side), reflecting increases in liabilities, equity, and revenue accounts.

Account

A record used to keep track of financial transactions within a specific category in accounting.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and revenue accounts, or decreases in assets and expense accounts are recorded.