Which of the Following Statements Is CORRECT

question 53

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Societal Distrust

A prevalent or widespread lack of confidence in the institutions, systems, or entities that structure society.

CSR

Corporate Social Responsibility, a business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Employee Innovation

Describes the process where employees contribute new ideas, methods, or products that improve the organization's operations or offerings.

Recruiting Employees

The process of identifying, attracting, and selecting suitable candidates to fill job vacancies within an organization.