Which of the Following Statements Is CORRECT

question 80

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:

Gulf of Mexico

A large ocean basin near the southeastern coast of North America, bounded by the United States, Mexico, and Cuba, known for its rich biodiversity and significant oil reserves.

Narrow Ocean

A relatively thin and elongated body of oceanic water situated between more substantial land masses.

Narrow Ocean

Refers specifically to the relatively thinner and smaller expanses of ocean, often found between landmasses.

Narrow Sea

A relatively small and elongated body of seawater that lies between two landmasses, often acting as a natural border.