The Gini Coefficient Is Computed by

question 135

Multiple Choice

The Gini coefficient is computed by

• A)multiplying the area between the line of equality and the Lorenz curve by the area below the line of equality.
• B)dividing the area between the Lorenz curve and the line of equality by the area below the line of equality.
• C)subtracting the area between the line of equality and the Lorenz curve from the area below the line of equality.
• D)dividing the length of the line of equality by the length of the Lorenz curve.
• E)dividing the area between the Lorenz curve and the line of equality by the area below the Lorenz curve.

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Definitions:

Investments In Associates

Investments where the investor has significant influence (typically 20-50% ownership) over the investee but does not control it.

Measured At Cost

An accounting principle where an asset is recorded on the balance sheet based on its original purchase price, including all costs necessary to get it ready for its intended use.

Consolidated Financial Statements

Financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity.