Which of the Following Can Be Computed As: Necessary Increase

question 37

Multiple Choice

Which of the following can be computed as: Necessary increase in assets minus spontaneous increase in liabilities minus projected increase in retained earnings?

• A) additional funds needed
• B) capital intensity ratio
• C) current ratio
• D) spontaneous assets

---

Definitions:

Merit System

An approach to hiring and promoting government employees based on their ability and performance rather than political connections or factors.

Political Appointment System

A system where government officials are appointed based on their political affiliations and loyalty rather than merit or competitive examination.

Career Civil Servants System

A system employing individuals who work for the government and are selected based on merit rather than appointed or elected, providing continuity within the bureaucracy.

Pendleton Act

An 1883 U.S. federal law that established that positions within the federal government should be awarded based on merit instead of political affiliation.