The Federal Government Started Running a Budget Surplus in 1998

question 111

Multiple Choice

The federal government started running a budget surplus in 1998.By 2002,the budget surplus had turned into a budget deficit.Why do you think the budget deficit returned in 2002?

• A) There were spending increases to reduce the impacts of the Great Recession.
• B) Entitlement programs were expanded in 2002, causing outlays to exceed revenues.
• C) There was increased military spending in response to the 9/11 terrorist attacks.
• D) There were large decreases in tax rates, which reduced total tax revenues.
• E) Politicians were spending the surplus too quickly on projects that would benefit their home districts.

Understand the concept of control and its implications on consolidation.

Grasp the principles of measuring noncontrolling interest and the role of goodwill in consolidation.

Comprehend the calculation and reporting of consolidated net income.

Understand the components and computation of the total acquisition-date fair value.

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Definitions:

Economic Capital

Economic capital is the total assets or wealth owned by an individual or organization, which can be used or invested to generate income or produce further wealth.

Social Integration

The process during which newcomers or minorities are incorporated into the social structure of the host society.

Trade School

An educational institution that teaches job-specific skills for specific careers or trades, rather than academic subjects.

High School Diplomas

Certification awarded by educational institutions to signify that a student has completed the required coursework and standards for secondary education.