Sam Qualifies as Being in the Category of Absolute Poverty

question 44

Multiple Choice

Sam qualifies as being in the category of absolute poverty. In view of this, which of the following statements BEST describes Sam?

• A) Sam has less income and resources relative to those living next to him.
• B) Sam's income falls below the median average income of others in society.
• C) Sam has been unemployed for most of his life.
• D) Sam cannot afford the essentials needed to be a functioning member of society.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.

Ratio Analysis

A quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability by comparing financial statement items.

Financial Statements

Official records that outline a company's financial activities and conditions, including the balance sheet, income statement, and cash flow statement.

Firm's Financial Position

The status of a company's assets, liabilities, and equity at a given point in time, as reflected in its financial statements.