Question
The table below presents the tax revenue and spending for the government over five years. a. Under the Budget Amount column calculate the annual budget
The table below presents the tax revenue and spending for the government over five years.
a. Under the "Budget Amount" column calculate the annual budget outcome.
Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.
b. Under the "Budget" column determine whether the annual budget outcome is a budget surplus, budget deficit, or a balanced budget.
Government Revenue and Spending
Year | Tax Revenue (billions of dollars) | Spending (billions of dollars) | Budget Amount (billions of dollars) | Budget |
| 1 | $500 | $400 | $ | (Click to select) Deficit Balanced Surplus |
| 2 | 300 | 100 | (Click to select) Balanced Surplus Deficit | |
| 3 | 200 | 400 | (Click to select) Balanced Surplus Deficit | |
| 4 | 800 | 500 | (Click to select) Surplus Deficit Balanced | |
| 5 | 800 | 800 | (Click to select) Deficit Balanced Surplus |
a. Under the "Budget Amount" column calculate the annual budget outcome.
b. Under the "Budget" column determine whether the annual budget outcome is a budget surplus, budget deficit, or a balanced budget.
Step by Step Solution
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Step: 1
Lets solve the problem by calculating the Budget Amount for each year and then determine whether the budget is a surplus deficit or balanced Part A Calculate the Annual Budget Outcome The Budget Amoun...
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Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
978-0538476232
