What Ratio Will Definitely Increase When a Firm Increases Its

question 58

Multiple Choice

What ratio will definitely increase when a firm increases its annual sales with no corresponding increase in assets?

• A) Asset turnover
• B) Current ratio
• C) Liquidity ratio
• D) Quick ratio

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Definitions:

Good

A tangible product or item that satisfies some human desire or need, often available for sale in the market.

Tax Revenue

Government income collected from citizens and businesses through imposed levies and duties.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Good

An item or service that fulfills a consumer's want or need, which can be tangible, like a car, or intangible, like a service provided by a dentist.