Which of the Following Statements Is INCORRECT

question 363

Multiple Choice

Which of the following statements is INCORRECT?

• A) The government sector balance equals net taxes minus government expenditures on goods and services.
• B) Private sector balance equal private investment minus private saving.
• C) The sum of government sector and private sector balances equals net exports.
• D) Net exports equals exports minus imports.

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Definitions:

Retention Ratio

The proportion of earnings kept back in a company to reinvest, rather than being paid out as dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without having to increase debt or equity financing.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period.

Inventory Balance

The total value of all the goods and materials held by a company as stock, intended for sale or production.