Which of the Following Statements Is Not Correct

question 107

Multiple Choice

Which of the following statements is not correct?

• A)If GDP is rising faster than debt,the government is,in some sense,living within its means.
• B)The ratio of debt to GDP in the United States has always been less than one.
• C)Debts during wars may distribute the burden of fighting the war more evenly across generations.
• D)During times of peace in the United States,the ratio of debt to GDP sometimes rose.

---

Definitions:

Debit Side

refers to the left-hand side of a ledger account that records increases in assets, expenses, and decreases in liabilities and equity.

Credit Side

The right side of an account in double-entry bookkeeping, typically used to record increases in liabilities, revenue, or equity.

Basic Accounting Equation

The foundational accounting principle stating that Assets = Liabilities + Equity.

General Journal

An initial record where all transactions are first entered, providing a chronological order of all financial transactions made by a business.