If There Is a National Debt,we Can Conclude That the Federal

question 171

Multiple Choice

If there is a national debt,we can conclude that the federal government has

• A) borrowed in the past.
• B) purchased more goods and services than were needed.
• C) spent money foolishly.
• D) loaned funds to U.S. taxpayers in the past.
• E) loaned funds to other nations in the past.

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Definitions:

Assets

Resources owned or controlled by a business or individual that are expected to produce future economic benefits.

Liabilities

Liabilities represent the obligations or debts that a company owes to others, which must be settled through the transfer of economic benefits like cash or goods.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to verify the balance of debits and credits.

Current Assets

Resources anticipated to be cashed in, disposed of, or utilized within a year or the standard operating period of the company.