Question

What is the difference between a deficit and a surplus

A). A deficit is the amount of money gained as a result of taxation; a surplus is the amount of money lost as a result of spending.

B). A deficit results when less money is spent than taken in; a surplus results when less money is taken in than spent.

C). A deficit is the result of consecutive years of surpluses; a surplus is the amount of money that is greater than what is budgeted.

D). A deficit results when more money is spent than is taken in; a surplus results when more money is taken in than is spent.

Answer 1

D). A deficit results when more money is spent than is taken in; a surplus results when more money is taken in than is spent.

Answer 2

Answer:

D is the correct answer.

Explanation:

The deficit is also called deficit spending. It is the amount of money when the spending exceeds the revenue in a period. It is the opposite of the budget surplus. The term is applied to the government budget, private company's budget and individual budgets.

While in the budget surplus the income exceeds the expenditures. It is also used for the government's financial state. In simple terms, it is called savings. If a government is having budget surplus it means that the government is managed effectively.