Question

Deficit

Answer 1

[AI-generated answer — Bot GPT 3.5]

A deficit occurs when expenses exceed revenues or when liabilities exceed assets. It is often used in the context of financial statements to indicate a negative balance. A deficit can also refer to a shortfall or inadequacy in a certain area or resource. For example, a country may have a trade deficit if it imports more goods than it exports. Strategies to address a deficit may include reducing expenses, increasing revenues, or seeking external resources.