When the Current Assets of a Company Such as Trade

question 106

True/False

When the current assets of a company such as trade receivables or inventory increase during the year, the increase provides additional cash inflow from operating activities.

---

Definitions:

Supply-Side Economists

Economists who believe that reducing tax rates and deregulating markets to facilitate the supply of goods and services are the best ways to stimulate economic growth.

High Tax Rates

Elevated percentages of an individual's or company's income that must be paid to the government, affecting disposable income and investments.

Laffer Curve

A theoretical representation suggesting that there is an optimal tax rate that maximizes revenue without discouraging economic activity.

Classical Economists

Economists and thinkers primarily from the 18th and 19th centuries, such as Adam Smith, David Ricardo, and John Stuart Mill, who focused on developing theories about the workings of market economies.