Which of the Following Statements Is Most Correct

question 101

Multiple Choice

Which of the following statements is most correct?

• A) Using cash to purchase inventories will increase a company's quick ratio and reduce its current ratio.
• B) Using cash to purchase inventories will reduce a company's quick ratio and increase its current ratio.
• C) If a company's total assets turnover ratio exceeds the industry average, and yet its fixed assets turnover ratio is below the industry average, this suggests that the company has excessive current assets (more than the industry average).
• D) Answers b and c are correct.
• E) None of the answers above is correct.

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Definitions:

Specific High Performance Goal

A clearly defined target that aims to achieve superior outcomes, often challenging and precise, designed to enhance performance.

Do Your Best Goal

A personal objective focused on exerting maximum effort and achieving the highest level of performance possible.

Participation

The act of taking part or becoming involved in activities or discussions within a group or organization.

Goal Setting

The process of identifying specific, measurable, and time-targeted objectives to be achieved.