The Term Deficit Refers to

question 67

Multiple Choice

The term deficit refers to

• A) an excess of expenses over revenues for one given operating period.
• B) a Retained Earnings account with a debit balance.
• C) an excess of actual expenses over amounts budgeted for those expenses.
• D) income of a prior period that was overstated when it was first reported.

---

Definitions:

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life, reflecting the loss in value over time.

Business Use

The utilization of goods, services, or assets for the purpose of generating income or benefits in a business context.

Half-Year Convention

The Half-Year Convention is a method for calculating depreciation in which all assets acquired during a year are considered to have been acquired at the midpoint of the year.

Real Property

Land and anything permanently affixed to it, such as buildings, fences, and those things attached to the buildings.