Which of the Following Results Is Generally Considered Favorable

question 83

Multiple Choice

Which of the following results is generally considered favorable?

• A)a large decrease in the accounts receivable turnover ratio
• B)an increase in the inventory turnover ratio
• C)an increase in sales along with a larger decrease in the gross profit percentage.
• D)a decrease in the operating cash flow ratio

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Definitions:

Swaps

Financial derivatives where two parties agree to exchange cash flows or other financial instruments for a set period of time.

Currency Swaps

Bilateral agreements to exchange periodic payments where the payments are based in two different currencies.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers indirectly.

LIBOR

London Interbank Offered Rate; the rate that large banks in London charge one another.