Which of the Following Is a Positive Statement

question 76

Multiple Choice

Which of the following is a positive statement?

• A) Individuals should make good long-term decisions.
• B) Corporations should maximize shareholder value.
• C) Government should reduce the level of unemployment.
• D) The most important effects of policy happen in the short term.
• E) The unemployment rate is 8%.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company is collecting on its credit sales by dividing net credit sales by average accounts receivable.

Horizontal Analysis

A side-by-side comparison of two or more years’ financial statements.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (or financial statements) is represented as a proportion of the total account.

Common-Size Financial Statement

A financial analysis tool that presents all line items as a percentage of a common base figure, making it easier to compare financial statements of different-sized companies.