Why Is It So Important for Canadians to Understand the Dependency

question 56

Multiple Choice

Why is it so important for Canadians to understand the dependency ratio?

• A) It tells us how many people are under the age of 18.
• B) It tells how many people are over the age of 65.
• C) It tells us the number of working-age versus non-working-age Canadians.
• D) It tells us where our respective governments need to spend taxpayer dollars.

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Definitions:

Cash Dividends

Payments made out of a corporation's earnings to its shareholders, typically distributed as a fixed amount per share of stock.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Operating Activities

Business activities related to the day-to-day functions of a company involved in producing and delivering its products or services.

Cash Dividends

Payments made by a company to its shareholders out of its profits or reserves.