Which of the Following Statements Is CORRECT

question 65

Multiple Choice

Which of the following statements is CORRECT?

• A) The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio.
• B) If two firms have the same ROA,the firm with the most debt can be expected to have the lower ROE.
• C) An increase in the DSO,other things held constant,could be expected to increase the total assets turnover ratio.
• D) An increase in the DSO,other things held constant,could be expected to increase the ROE.
• E) An increase in a firm's total debt to total capital ratio,with no changes in its sales or operating costs,could be expected to lower its profit margin.

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Definitions:

Joint Locations

The specific anatomical areas where two or more bones meet, allowing for a variety of movements.

Phantom Limb

An illusion following amputation of a limb that the limb still exists.

Sensation

The process of receiving and interpreting information from the environment through our senses, such as sight, smell, and touch.

Primary Osteoporosis

A condition characterized by a decrease in bone density and strength, leading to an increased risk of fractures, occurring without an identifiable secondary cause.