Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm increases its sales and cost of goods sold 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 and cost of goods sold 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:

Ethics

The beliefs, values, and moral principles by which a person determines what is right or wrong.

Communication Model

A theoretical framework that describes how messages are sent and received, including components like sender, message, medium, receiver, and feedback.

Sender And Receiver

Terms used in communication theory to describe the parties involved in transmitting and receiving a message, respectively.

Human Communication

The interaction and sharing of messages or information among people through various verbal or non-verbal methods.