Which Statement About Inventories Is Correct

question 93

Multiple Choice

Which statement about inventories 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.

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Definitions:

Symptom-Based

Symptom-based approaches focus on identifying and treating the specific symptoms of a disorder or condition rather than its underlying causes.

Treatment Plans

Outlines developed by healthcare professionals that specify the goals, strategies, and methods to address a patient's condition.

Measurable

Quantifiable or able to be assessed or evaluated by size, amount, or degree, often used in the context of goals or outcomes.

Symptom Reduction

This refers to the process or outcome of decreasing the intensity or frequency of manifestations of a disease or disorder.