Which of the Following Statements Is CORRECT

question 8

Multiple Choice

Which of the following statements is CORRECT?

• A) an increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin.
• B) the ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the dso or the inventory turnover ratio.
• C) if two firms have the same roa, the firm with the most debt can be expected to have the lower roe.
• D) an increase in the dso, other things held constant, could be expected to increase the total assets turnover ratio.
• E) an increase in the dso, other things held constant, could be expected to increase the roe.

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Definitions:

Reviewers

Individuals who evaluate, critique, or give their opinions on products, services, artistic works, or literature, often influencing public perception.

Increasingly Popular

Gaining more widespread acceptance, favor, or usage over time.

Objectivity

The principle or practice of maintaining impartiality and neutrality, avoiding bias or subjective judgment in various fields.

Socially Constructed

A concept or perception that is created and maintained through social interactions and shared beliefs within a society.