A Government Begins the Year with a Debt of $50

question 11

Multiple Choice

A government begins the year with a debt of $50 billion, collects $10 billion in tax revenues and spends $4 billion. Debt at the end of the year is

• A) $50 billion.
• B) $46 billion.
• C) $64 billion.
• D) $44 billion.
• E) $36 billion.

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Definitions:

Inventory

A collection of goods or materials a company holds for sale or production.

Consolidated Financial Statements

Financial reports that aggregate the financial position and operating results of a parent company and its subsidiaries.

Common Stock

A type of security that represents ownership in a corporation, granting the holder a share in the company's profits and losses.

Consolidation Entry

Journal entries made in the consolidation process to adjust and eliminate intercompany transactions between parent and subsidiary entities in consolidated financial statements.