Which of the Following Statements Is CORRECT

question 4

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:

Functionalist

Pertaining to the perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability.

MarxIST-Feminist

A theoretical approach combining Marxist and feminist theories to examine the ways in which women are oppressed through systems of capitalism and patriarchal structures.

Constructivist

Relating to an educational philosophy that argues learners construct knowledge through their experiences and interactions with the world.

Heterosexist

A worldview that promotes heterosexuality as the normal or preferred sexual orientation, often marginalizing or discriminating against non-heterosexual behaviors and identities.