Which of the Following Statements Is NOT True About Corporate

question 50

Multiple Choice

Which of the following statements is NOT true about corporate income tax rates and economic activity?

• A) The income tax is the primary sources of revenues for national governments around the world.
• B) Before the Great Depression, state and local government expenditures in the U.S. were much lower than federal expenditures.
• C) Since 1939, state and local government expenditures have been much lower than federal expenditures.
• D) The great majority of U.S. government expenditures are on nondefense items such as health, economic support, and education.
• E) From 2005-2008, the average gross savings rate of OECD countries increased.

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Definitions:

Accounts Payable

Short-term liabilities of a company, representing amounts owed to vendors or suppliers for goods and services received but not yet paid for.

CCC

Refers to the Cash Conversion Cycle, a metric that gauges how efficiently a company manages its inventory, receivables, and payables to generate cash.

Peak Borrowing Needs

The maximum amount of capital a business or individual will need to borrow to meet its financial obligations.

Monthly Cash Budget

A financial plan projecting cash inflows and outflows on a monthly basis, used by companies to ensure liquidity and financial stability.