The Gini Ratio

question 54

Multiple Choice

The Gini ratio:

• A) measures the relative extent of poverty in a nation.
• B) compares the income of persons,households,or households at the 90^th percentile of the income distribution to the income at the 10^th percentile.
• C) is a numerical measure of the overall dispersion of income in a nation.
• D) is found by dividing the entire area below and to the right of the diagonal in the Lorenz diagram by the area between the diagonal and Lorenz curve.

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Definitions:

Convergence

In financial and accounting terminology, convergence refers to the growing harmonization of International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (GAAP), aiming to create a single set of global standards.

Initiatives

Specific actions or strategies undertaken by an organization to achieve particular objectives.

Accounting Standards

Guidelines and principles designed to improve the transparency and consistency of financial reporting and accounting practices.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the pursuit of an organization's goals.