BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When you have more money than you need for expenses.
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When you earn the same amount of money that you need for expenses.
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The shortfall created when income is lower than expenses.
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None of the above
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Detailed explanation-1: -A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets.
Detailed explanation-2: -A budget deficit occurs when money going out (spending) exceeds money coming in (revenue) during a defined period. In FY 2022, the federal government spent $6.27 trillion and collected $4.90 trillion in revenue, resulting in a deficit.
Detailed explanation-3: -A revenue deficit is when a company’s total revenue is less than its total expenditure. This indicates the company is spending more money than it can generate. The revenue deficit equation is easy to understand: it’s the difference between a company’s income and its expenses.
Detailed explanation-4: -A financial shortfall for individuals is usually the result of either reduced income or an unexpected increase in expenses, or financial obligations.
Detailed explanation-5: -A budget deficit or deficit financing occurs when the estimated government expenditures increase more than the estimated government revenue. Such differences may be met by either increasing the tax rate or imposing the higher price of goods and public utility services.