Since there is no maximum earnings on the Medicare component of ...

[Starlight]

Since there is no maximum earnings on the Medicare component of the Social Security tax, the Medicare tax rate of 1.45 is applied to total earnings.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

Positive financial leverage occurs when a company ________.
 
  A) has more current assets than current liabilities
  B) has a current ratio greater than 1.0 to 1
  C) earns more with the money it borrows than it has to pay to borrow that money
  D) has a high debt-to-equity ratio

[SAUXC]

Answer to Question 1

True

Answer to Question 2

C