Under capital budgeting, all of the following transactions would affect the federal budget deficit except the federal government's:
A) sending a check to a welfare recipient.
B) sending a check to the state of Massachusetts.
C) selling a highway to the state of New York and using the proceeds to retire federal debt.
D) selling an office building.

Question

Quizplus · Accepted Answer

Transactions that involve the sale of assets and using the proceeds to retire federal debt do not affect the budget deficit because they are considered financing transactions rather than budgetary expenditures. The budget deficit is influenced by government spending and revenue, not by how the government manages its assets or debt.

Under Capital Budgeting, All of the Following Transactions Would Affect