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:

Proposal

A detailed plan or offer put forward for consideration or acceptance by others, typically in a professional context.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Introduction

The initial section of a document, presentation, or work, meant to give an overview or background context.

Investigation

refers to a systematic and detailed examination or inquiry aimed at uncovering facts or information about a particular subject or event.