Which of the Following Statements Is Correct

question 64

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 asset turnover ratio increases when fixed assets are sold at a loss.
• D)The net profit margin ratio decreases when common stock is issueD.Selling fixed assets at a loss reduces average total assets which is the denominator of the asset turnover ratio. The asset turnover ratio will therefore increase.

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Definitions:

Coalition

A coalition refers to an alliance among individuals, during which they cooperate in joint action, each in their own self-interest, joining forces together for a common cause.

Group Members

Individuals who belong to a social or organizational group, share common goals, and are interconnected through roles, norms, and relationships within the group context.

Overwhelm

A state of being overpowered by emotions, tasks, or information to the extent that it is difficult to cope or respond effectively.

Tit For Tat

A strategy in conflict situations where an individual responds to an action with a similar or equivalent action; often described in the context of reciprocal actions.