If the Federal Government Has a Budget Deficit,then It Is

question 2

Multiple Choice

If the federal government has a budget deficit,then it is definitely the case that

• A)the tax revenue exceed government outlays.
• B)the tax revenue and government outlays are equal.
• C)the tax revenue is falling and government outlays are rising.
• D)government outlays exceed tax revenue.
• E)the tax revenue is rising and government outlays are falling.

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Definitions:

Operating Cycle

The period it takes for a business to buy inventory, sell products, and generate cash from operations.

Merchandising Company

A business that purchases finished goods for the purpose of resale without further processing.

Credit Sales

Sales made on credit, where payment is received after the goods or services are delivered.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in producing and selling its products.