Question

Define deficits, surpluses, and debt. How do accounting practices affect the definitions of deficits and surpluses? Explain in sentences.  

Answer 1

Deficit is usually the amount of something that is too small of what is demanded. Deficits sometimes means when expenditure is beyond revenues. Surplus generally is the amount of something that is too large than what is demanded. It refers to situation when revenues exceeds expenditure. Debt is the situation when some amount is owed especially in the future. It can come into the category of deferred payments.
Accounting practices refers to the keeping of financial records and policies of businesses. Since the accounting practices and procedures have the frequent documentations and list of future changes and policy alternatives, the series of data indicating surpluses or deficits and debts are noted frequently which leads to further implementation of accounting system meant to cope with data changes and policy alterations.