Which of the Following Statements Is CORRECT

question 8

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will decrease.
• B) A reduction in inventories held would have no effect on the current ratio.
• C) An increase in inventories would have no effect on the current ratio.
• D) If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.
• E) A reduction in the inventory turnover ratio will generally lead to an increase in the ROE.

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Definitions:

Labor Of Love

Work or effort done for the sake of passion or deep interest, not for financial gain or duty.

Family Relationships

The connections and bonds among members of a family, whether by blood, marriage, or adoption.

Family Care Giving

The act of providing physical, emotional, or financial support to relatives who are aging, ill, or disabled, often involving significant personal sacrifice.

Routine

A set sequence of actions regularly followed, especially one's daily procedures or habits.