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:

Members

Individuals who are part of a group, organization, or community, sharing common interests or objectives.

Givebacks

Concessions made by workers to management, often in the form of reduced wages, benefits, or working conditions, typically in exchange for job security.

Employers

Individuals or entities that hire and provide work to employees, offering payment for services or labor performed.

Lockout

An employment and negotiation strategy in which an employer prevents employees from working during a dispute, aiming to pressure the union into concessions.