Question

The federal budget

A. is required to balance by law

. B. can have a? deficit, a? surplus, or a balance.

C. can have a surplus but not a deficit.

D. can have a deficit but not a surplus.

E. can have a deficit or a surplus but cannot be balanced.

Answer 1

The Federal budget

B. can have a deficit, a surplus, or a balance.

A budget is a financial plan or estimation of prospective income and expenditure. It can be defined as annual financial statement of estimated receipts and expenditure of the Government.

A budget can be divided into an unbalanced budget and balanced budget. A balance budget is that where the receipts are equals to expenditures.

An unbalanced budget can be a surplus and deficit budget.

In a surplus budget the recepits will be more than the expenditure.

In a deficit budget the expenditures will be more than the receipts.

A budget can be a balanced or unbalanced budget.