The Higher the Current Ratio,the Better

question 48

True/False

The higher the current ratio,the better.

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Definitions:

Social Security Tax

A tax paid equally by employee and employer, based on employee’s wages. Most proceeds are used to pay Social Security retirement and Medicare benefits.

Personal Income Tax

A tax levied on individuals or entities based on their income or profits.

Corporate Profits

The surplus income of corporations after all expenses have been met, indicative of corporate health.

Inflationary Gap

Occurs when equilibrium GDP is greater than full-employment GDP.