Which of the Following Is Correct

question 32

Multiple Choice

Which of the following is correct?

• A)Deficits always require people to consume at the expense of their children.
• B)If the government uses funds to pay for investment programs,on net the debt need not burden future generations.
• C)If the government is in debt it must be running a deficit currently.
• D)The current government debt is a large share of lifetime income.

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Definitions:

Variable Costing

A technique in management accounting that only considers variable production costs as product costs, with fixed costs treated as period costs.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold to customers.

Absorption Costing

Absorption costing is an accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Net Operating Income

A financial metric that calculates a company's income after operating expenses are deducted, but before interest and taxes.