Which of the Following Statements Regarding the Effects of a Business

question 13

Multiple Choice

Which of the following statements regarding the effects of a business decision on a financial ratio is true?

• A)If a company is expanding its facilities,its fixed asset turnover ratio is likely to fall temporarily.
• B)If a company extends its payment period for customers,its accounts receivable ratio is likely to rise.
• C)If a company eases its credit granting policies,its days to collect ratio is likely to fall.
• D)If a company builds up inventories,its days to sell ratio is likely to fall.

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Definitions:

Self-conscious Emotions

Emotions that require self-awareness and reflect on how we perceive others perceiving us, such as embarrassment, pride, shame, and guilt.

Self-awareness

Self-awareness regarding one’s traits, emotions, motivations, and goals.

Self-recognition

The cognitive ability to recognize oneself in a mirror or photograph, demonstrating an awareness of the self as distinct from others.

18-24 Months

A developmental age range for toddlers characterized by significant growth in motor skills, language acquisition, and independence.