If a Company Has High Net Income,it May Still Have

question 62

True/False

If a company has high net income,it may still have difficulty paying its bills.

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Definitions:

Quarterly

Occurring every three months or four times a year.

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.

RRSP

A registered retirement savings plan, a tax-advantaged account designed to help Canadians save for retirement.

Compounded

The process by which interest is earned on both the initial principal and the interest that has been added to it, thus "compounding" the amount.