Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A)Selling inventory at its cost does not affect the net profit margin ratio.
• B)Accruing sales revenue does not affect the net profit margin ratio.
• C)The total asset turnover ratio increases when fixed assets are sold at a loss.
• D)The net profit margin ratio decreases when common stock is issued.

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Definitions:

Pinworms

A common intestinal parasite, Enterobius vermicularis, that causes itching around the anus due to its nocturnal egg-laying behavior.

Cellophane Tape

A thin, transparent adhesive tape made from cellulose, commonly used for sealing, binding, and minor repairs.

Paralytic Ileus

A temporary paralysis of a segment of the intestines that halts the movement of materials through the bowel, often occurring after abdominal surgery.

Bowel Sounds

Noises made by the movement of the intestines as they push food through the digestive system, considered a normal and healthy sign during physical examination.