As You're Checking Out the Online Edition of Your Local

question 221

Multiple Choice

As you're checking out the online edition of your local newspaper, you quickly scan a report in the business section that says government spending will again exceed tax revenues in the current year. What does this mean for the economy?

• A) The total national debt is likely to increase.
• B) The national deficit is likely to decrease.
• C) The rate of inflation is likely to fall.
• D) The monetary policies pursued by the Fed need tightening.

Calculate the acid-test ratio based on given financial information.

Understand the function and calculation of the gross margin ratio.

Differentiate between the acid-test ratio and current ratio.

Distinguish between merchandise inventory as a current asset and its presentation in financial statements.

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Definitions:

Pay Employees

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Hours

The measurement of time that an individual works on a given day or for a specific project.

National Labor Relations Board

is an independent federal agency in the United States responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

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