Specific Elements of Economic Soundness Include

question 54

Multiple Choice

Specific elements of economic soundness include

• A) investment and consumption.
• B) real income level.
• C) economic sectors, performance and infrastructure development.
• D) all of the above.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or during the normal operating cycle.

Long-term Investments

Assets held as investments that a company intends to hold for more than one accounting period.

Plant Assets

Long-term tangible assets used in the production process, including machinery, buildings, and equipment, which are subject to depreciation.

Current Ratio

A financial metric assessing a firm’s capacity to settle its current liabilities using its current assets.