The Ratio of Fixed Assets to Long-Term Liabilities Provides a Measure

question 180

True/False

The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

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Definitions:

Net Pay

The amount of money an employee receives after all deductions, such as taxes and retirement contributions, have been subtracted from their gross pay.

Allowances

Reductions from the list price of goods or services, granted for various reasons such as defects or customer dissatisfaction.

Wage Base Limit

The maximum amount of income on which employees are required to pay certain taxes, such as social security taxes.

SUTA

The State Unemployment Tax Act, which mandates employers to pay state unemployment taxes to fund the unemployment compensation programs for workers in their state.