Match the Term with Its Definition

question 35

Multiple Choice

Match the term with its definition.
-The degree to which a firm has cash available to meet maturing debt obligations

• A)accrual-basis accounting
• B)cash
• C)cash-basis accounting
• D)depreciable assets
• E)depreciation expense
• F)financial statements
• G)inventory
• H)liquidity
• I)operating profit margin
• J)return on assets
• K)return on equity

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Definitions:

Gini Ratio

A measure to determine the imbalance in earnings among a community's members, moving from 0, suggesting equality, to 1, suggesting extreme inequality.

Perfect Income Equality

A hypothetical scenario where every individual or household in a society earns exactly the same income, eliminating any income disparity.

Lorenz Curve

A graphical representation of the distribution of income or of wealth within a population, highlighting inequalities.

Gini Ratio

An indicator of how income is distributed across a population, varying from 0 for total equality to 1 for absolute inequality.