Which statement correctly describes a surplus?
The national debt of the federal government is greater in the current fiscal year than the previous fiscal year.
The total revenue of the federal government is greater than its total expenses in the fiscal year.
The total revenue of the federal government is less than its total expenses in the fiscal year.
The total revenue of the federal government is equal to its total expenses in the fiscal year.
The total revenue of the federal government is greater than its total expenses in the fiscal year.
The correct statement that describes a surplus is: "The total revenue of the federal government is greater than its total expenses in the fiscal year."
The statement that correctly describes a surplus is: "The total revenue of the federal government is greater than its total expenses in the fiscal year."
A surplus occurs when the total revenue of a government or organization is greater than its total expenses during a specific period, usually a fiscal year. In other words, it means that the government or organization has more income or funds coming in than it spends or uses.
To determine if there is a surplus, you need to compare the total revenue (the amount of money earned through various sources like taxes, fees, and investments) to the total expenses (the amount of money spent on various items like salaries, programs, and debt servicing). If the revenue is greater than the expenses, then there is a surplus.
In the given options, the only statement that reflects a surplus is the one stating that the "total revenue of the federal government is greater than its total expenses in the fiscal year."