Which of the Following Is Not Correct

question 174

Multiple Choice

Which of the following is not correct?

• A)Government debt can continue to rise forever.
• B)If the government uses funds to pay for investment programs, on net the debt need not burden future generations.
• C)Social Security does not transfer wealth from younger generations to older generations.
• D)The average U.S. citizens' share of the government debt represents about 1 percent of her lifetime income.

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Definitions:

Periodic Inventory System

An accounting method where inventory and cost of goods sold are determined at set intervals, such as monthly or annually.

Perpetual Inventory System

An inventory accounting approach that instantly documents inventory purchases or sales using computerized point-of-sale systems and enterprise asset management software.

Inventory Ledger

A record that keeps track of the detailed inventory transactions of a business, including purchases, sales, returns, and write-offs.

Cost Flow

The pattern in which costs move through a business, beginning with the acquisition of raw materials and ending with the delivery of final products to consumers.