Identify and Define the Three Most Frequently Used Dependency Ratios

question 15

Essay

Identify and define the three most frequently used dependency ratios. What do they each have in common? Are there more children than seniors in Canada? How do we know from these ratios?

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Cash Flow Statement

A financial document detailing the inflow and outflow of cash in a business, thereby indicating its operating, investing, and financing activities over a period.

Statement of Equity

A financial document that outlines the changes in the equity section of the balance sheet during a certain period, including profits retained in the business, dividends paid, and equity capital injections.

Gross Profit

The difference between revenue and the cost of goods sold before deduction of overheads, interests, and taxes.