Implicit liabilities refers to promises made by the government, such as:
A)aid to foreign countries.
B)building roads and bridges.
C)Social Security and Medicare payments.
D)contributions to the National Endowment for the Arts.

Question

Quizplus · Accepted Answer

Social Security and Medicare payments are promises made by the government to provide benefits to eligible individuals, which represents an implicit liability. A, B, and D are also liabilities, but not implicit liabilities as they are usually explicitly budgeted for and accounted for in the government's financial statements.

Implicit Liabilities Refers to Promises Made by the Government, Such