When the Chief Executive of a Governmental Unit Submits a "Balanced

question 14

Multiple Choice

When the chief executive of a governmental unit submits a "balanced budget" to the legislative body,it usually means that:

• A)the budget is balanced on the full accrual basis of accounting
• B)the budget is balanced in accordance with generally accepted accounting principles
• C)proposed expenditures do not exceed estimated monies available for the year
• D)proposed expenditures do not exceed estimated tax revenues to be raised during the year

---

Definitions:

Elastic Demand

refers to a situation where the quantity demanded of a good or service is highly responsive to changes in its price.

Excess Burden

The economic loss to society due to market inefficiencies, often associated with taxes or other government policies that distort market behavior beyond the revenue raised or spending undertaken.

Net Worth

The difference between the total assets and total liabilities of an individual, company, or entity.

Liabilities

Financial obligations or debts that a business or individual owes to others.