Which of the Following Statements Regarding the Effects of a Business

question 5

Multiple Choice

Which of the following statements regarding the effects of a business decision on a financial ratio is true?

• A) If a company is expanding its facilities, its fixed asset turnover ratio is likely to fall temporarily.
• B) If a company extends its payment period for customers, its quality of income ratio is likely to rise.
• C) If a company eases its credit granting policies, the accounts receivable turnover is likely to rise.
• D) If a company builds up inventories, its days to sell ratio is likely to fall.

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Definitions:

Cervix

The lower, narrow part of the uterus that opens into the vagina, playing a key role in female reproductive health and childbirth.

Childbirth

The act or process of giving birth to a baby; also known as parturition.

Dilation

The process of enlargement, expansion, or stretching of a body part or structure.

Cervix

is a lower part of the uterus in the female reproductive system, connecting the uterus to the vagina and playing a critical role in childbirth and menstrual flow.