amayaiscool3886
24.06.2019 •
Business
Boston recyclers company uses the indirect method to prepare its statement of cash flows. refer to the following information for 2019: 1. retained earnings, beginning balance, $ 142 comma 000 2. retained earnings, ending balance, $ 125 comma 000 3. there is a net loss of $ 13 comma 000 for the year. what is the amount of dividends declared during the year?
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Ответ:
budget deficit
Explanation:
A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country. The government generally uses the term budget deficit when referring to spending rather than businesses or individuals. Accrued deficits form national debt.
Budget Deficit Explained
In cases where a budget deficit is identified, current expenses exceed the amount of income received through standard operations. A nation wishing to correct its budget deficit may need to cut back on certain expenditures, increase revenue-generating activities, or employ a combination of the two.
KEY TAKEAWAYS
* A budget deficit happens when current expenses exceed the amount of income received through standard operations.
* Certain unanticipated events and policies may cause budget deficits.
* Countries can counter budget deficits by raising taxes and cutting spending.
The opposite of a budget deficit is a budget surplus. When a surplus occurs, revenue exceeds current expenses and results in excess funds that can be allocated as desired. In situations where the inflows equal the outflows, the budget is balanced.
In the early 20th century, few industrialized countries had large fiscal deficits, however, during the First World War deficits grew as governments borrowed heavily and depleted financial reserves to finance the war and their growth. These wartime and growth deficits continued until the 1960s and 1970s when world economic growth rates dropped.