The Current Ratio Is a Measure of a Company's

question 23

Multiple Choice

The current ratio is a measure of a company's:

• A)profitability.
• B)leverage.
• C)liquidity.
• D)solvency.

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Definitions:

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act that fund Social Security and Medicare programs.

Regressive

Pertaining to a tax system in which the tax rate decreases as the taxable amount increases, commonly considered less fair because it imposes a heavier burden relative to income on those with less.

Progressive

Pertaining to a taxation system in which the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy to ensure equity.

Consumption Tax

A tax on the purchase of goods or services, levied at the point of sale, designed to tax spending rather than income or savings.