A Current Ratio of __________ or Better Is Usually Considered

question 93

Short Answer

A current ratio of __________ or better is usually considered a comfortable margin.

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Definitions:

Disposable Income

Funds available to households for saving and spending once income taxes are deducted.

APC

Average Propensity to Consume, which is the fraction of income spent on consumption.

Gross Investment

The total amount of capital expenditure a company spends on maintaining and increasing the scope of its operations.

Net Investment

The total spending on new fixed investment minus depreciation on existing physical assets.