Which of the Following Is Not Correct

question 28

Multiple Choice

Which of the following is not correct?

• A)Deficits give people the opportunity to consume at the expense of their children,but deficits do not require them to do so.
• B)Deficits and surpluses could be used to avoid fluctuations in the tax rate.
• C)The only times deficits have increased have been during times of war or economic downturns.
• D)Reducing the budget deficit rather than funding more education spending could,all things considered,make future generations worse off.

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Definitions:

Accounts Receivable

The sum customers owe a corporation for goods or services delivered but not yet compensated.

Credit Balance

A situation in an account where the sum of credits exceeds the sum of debits.

Contra-Asset

An asset account where its balance is a negative figure, offsetting the balance of a related asset account.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is an accounting provision that estimates the amount of receivables that may not be collectible due to customer defaults.