Its capacity to perform the functions you or a person want it to
Explanation:
1. Working "off of books involves working within the underground economy, in which government economic activities are hidden to avoid taxation or laws, or in which products and services are sold illegally.
2. As the government is shielded from activities within the informal economy, they would not be included in GDP figures.
3. If GDP is calculated accurately, the government will find it difficult to set strategies to accomplish macroeconomic objectives. Normally, the government does not receive tax revenue from illegal sales. This could result the government to raise taxes on non-underground company individuals and companies, thus prohibiting their jobs, saving and investment.
In accounting for stock investments between 20% and 50%, the Invest equity method is used.
Investing is dedicating an asset to achieve an increase in value over a period of time. Making an investment requires sacrificing your current assets such as time, money and effort. The purpose of investment in finance is to generate profit from the invested assets. An investment is an asset or item acquired for the purpose of income or capital appreciation. Valuation refers to the increase in value of an asset over time.
When a person purchases a commodity as an investment, the intention is not to consume the commodity, but to use it to create wealth in the future. Investing always requires spending capital today, be it time, effort, money, or assets, in hopes of a greater return in the future than what was originally invested.
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Answer: be able to honor its debt payment
Explanation:
The times interest earned (TIE) ratio is typically used to know the ability of a particular company to pay its debt based on the current income that the company has. It is gotten by dividing the earnings before interest and taxes by the total interest that is payable on the debt.
Since Company A has a TIE ratio of 3 and Company B has a TIE ratio of 1.2, then Company A is more likely to pay its debt than Company B.