The Financial Structure of an Entity Can Be Assessed Using

question 79

Multiple Choice

The financial structure of an entity can be assessed using the:

• A) current ratio.
• B) quick asset ratio.
• C) times interest earned.
• D) debt to equity ratio.

---

Definitions:

Long-Run Aggregate Supply

Represents the total output an economy can produce when both capital and labor are fully employed, assuming constant technology and resources.

Real GDP

The total value of goods and services produced in a country, adjusted for inflation or deflation, providing a more accurate measure of economic output.

Potential Output

The highest level of real GDP that an economy can achieve when it is operating at full capacity, without causing inflation.

Recessionary Gap

A situation where an economy's real GDP is lower than its potential GDP, leading to underutilized resources and higher unemployment.