Which of the Following Statements Is Most Correct? If a Company

question 17

Multiple Choice

Which of the following statements is most correct? If a company lowers its DSO,but no changes occur in sales or operating costs,then

• A) the company might well end up with a higher debt ratio.
• B) the company might well end up with a lower debt ratio.
• C) the company would probably end up with a higher ROE.
• D) the company's total asset turnover ratio would probably decline.
• E) none of the above is a correct statement.

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Definitions:

Synarthrosis

A type of joint that is immovable, typically found in the skull.

Movement

The act or process of moving, particularly of the human body or parts thereof.

Allows

To permit or give permission for something to happen.

Permits

Authorizations or licenses granted by an authority to carry out specific actions.