Table 20-6 -Refer to Table 20-6.A Person Who Is Concerned That Income

question 57

Multiple Choice

Table 20-6

-Refer to Table 20-6.A person who is concerned that income inequality has worsened between 2007 and 2008 would cite which of the following statistics to support her position?

• A) The percentage of people earning less than $25,000 decreased from 2007 to 2008.
• B) The percentage of people earning more than $100,000 increased from 2007 to 2008.
• C) The percentage of people earning between $50,000 and $100,000 stayed virtually constant from 2007 to 2008.
• D) Both a) and b) are correct.

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Definitions:

Credit Standards

The financial strength and creditworthiness that qualifies a customer for a firm’s regular credit terms.

Financial Importance

Financial importance refers to the significance placed on managing finances effectively to ensure stability and growth of an individual's or organization's assets.

DSO Analysis

Stands for Days Sales Outstanding, a calculation used to assess the average number of days it takes a company to collect payment after a sale has been made.

Seasonal Changes

Variations in business or economic activity that occur within specific seasons or periods of the year, often predictable and recurring.