Which of the Following Statements Is True

question 57

Multiple Choice

Which of the following statements is true?

• A) A gross profit ratio that is declining over time indicates a reduction in the margin between the purchase price and the selling price of goods.
• B) An expense to sales ratio of 20% in year 1 and 22% in year 2 indicates that management policies to control expenses are succeeding.
• C) Generally speaking the slower the turnover of inventory the greater the profitability of the business.
• D) The formula for the inventory turnover ratio is sales divided by average inventory.

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Definitions:

Self-efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task.

Albert Bandura

An influential psychologist known for his work on social learning theory, which emphasizes the role of observational learning, self-efficacy, and personality in behavior.

Capability-specific Belief

An individual's confidence in their ability to perform tasks or activities related to a specific domain or skill set.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior.