In 2011, the Level of Taxation (The Average Tax Rate)

question 228

Multiple Choice

In 2011, the level of taxation (the average tax rate) required to pay interest on the public debt was about:

• A)2 percent of GDP.
• B)12 percent of GDP.
• C)26 percent of GDP.
• D)57 percent of GDP.

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Definitions:

Ratio Analysis

A quantitative analysis method used to evaluate a company's financial health by calculating ratios from financial statements.

Operating Activities

Transactions and other events that affect the net income of a business, relating to its principal revenue-producing operations.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Quick Ratio

A liquidity indicator that measures a company's ability to meet short-term obligations with its most liquid assets.