Which of the Following Statements Is True

question 35

Multiple Choice

Which of the following statements is true?

• A) If the asset turnover ratio remains constant and the profit margin increases,return on assets must have increased.
• B) If return on assets increases,return on equity must increase.
• C) If the current ratio increases,the quick ratio will also increase.
• D) None of the answers provided.

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Definitions:

Parol Evidence Rule

A legal rule that excludes the admission of oral statements, written agreements outside the contract, or preliminary agreements in interpreting a written contract.

Parol Evidence Rule

The parol evidence rule is a legal principle that prevents parties in a written contract from presenting external evidence that contradicts or adds to the written terms of the contract.

Statute Of Frauds

A legal concept that requires certain types of contracts to be written and signed in order to be legally enforceable.

At Will

Refers to employment arrangements where either the employer or employee can end the employment relationship at any time, for any reason not prohibited by law, and without prior notice.