Which of the Following Statements Is CORRECT

question 64

Multiple Choice

Which of the following statements is CORRECT?

• A) A decline in a firm's inventory turnover ratio suggests that it is improving both its inventory management and its liquidity position,i.e. ,that it is becoming more liquid.
• B) In general,it's better to have a low inventory turnover ratio than a high one,as a low one indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock.
• C) If a firm's fixed assets turnover ratio is significantly lower than the average for its industry,then it could be that the firm uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets.
• D) The more conservative a firm's management is,the higher the firm's total debt to total capital ratio is likely to be.
• E) The days sales outstanding ratio tells us how long it takes,on average,to collect after a sale is made.The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time.

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Definitions:

Oval Window

A membrane-covered opening that leads from the middle ear to the vestibule of the inner ear, where sound vibrations are transmitted.

Cochlea

A spiral-shaped, fluid-filled organ in the inner ear that is responsible for converting sound vibrations into nerve impulses that the brain can interpret as sound.

Inner Ear

The inner ear is the deepest part of the ear, containing the cochlea, vestibule, and semicircular canals, which are crucial for hearing and balance.

Hertz

The unit of frequency in the International System of Units (SI), defined as one cycle per second.