Which One of These Changes Indicates an Improvement in a Firm's

question 29

Multiple Choice

Which one of these changes indicates an improvement in a firm's asset management efficiency?

• A)an increase in the amount of assets per dollar of sales.
• B)an increase in the inventory turnover rate.
• C)a decrease in the receivables turnover rate.
• D)an increase in the average days in inventory.

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Definitions:

Par Value

The face value of a bond or a stock, as stated by the issuing company, which may differ from its market value.

Zero-Coupon Bond

A zero-coupon bond is a type of bond that does not pay periodic interest but is issued at a significant discount to its face value and redeemed for its full face value at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, accounting for interest payments and its current market price.

Rate Of Return

The accumulation or declination in an investment's value over an agreed period, indicated as a percentage of the investment’s beginning price.