The Survey Question, "Do You Believe That for Every Dollar

question 50

Multiple Choice

The survey question, "Do you believe that for every dollar of tax increase there should be $2 in spending cuts with the savings earmarked for deficit and debt reduction" is not a particularly well-written item because

• A) It addresses more than one issue in a single item
• B) It is not exhaustive
• C) It shows bias
• D) both a and c

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Definitions:

Pretax Profit/EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes interest and income tax expenses.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Current Ratio

A liquidity measure that compares a company's current assets to its current liabilities.

Return-On-Sales Ratio

A financial metric that calculates how efficiently a company is generating profits from its revenue.