Which of the Following Statements Best Serves as a Summary

question 49

Multiple Choice

Which of the following statements best serves as a summary of the otherstatements?

• A)Low income can mean poor nutrition during the formative years, which can retard mental and physical
• Development
• B)Low income and low productivity may reinforce each other in a cycle of poverty
• C)Low productivity obviously results in low income
• D)Low income means less saving and less saving means less investment in human and physical capital
• E)Poverty can result in less education, less capital formation, a poor diet, and little health care

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Definitions:

Acid-test Ratio

A liquidity measure that evaluates a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

This ratio assesses the capability of a firm to cover debts due within the next year by dividing its current assets by its current liabilities.

Year-end Information

Data or records summarizing the financial activities and status of an organization at the end of a fiscal year.

Acid-test Ratio

A financial metric that assesses a company's ability to pay its current liabilities with its most liquid assets.