Which of the Following Statements Is FALSE

question 23

Multiple Choice

Which of the following statements is FALSE?

• A)The calculation of the accounts receivable average collection period (ACP)would generally produce a more realistic assessment of how a firm is managing its accounts receivable if the analyst were to calculate the ACP for each month and average the results,than if the analyst were to solely use the fiscal year-end accounts receivable value.
• B)If an analyst were to compare the inventory turnover of one firm to that of another,the comparison can be distorted if the two firms use different methods of valuing ending inventory.
• C)Assume that two firms are in the same industry and one reports a higher debt ratio than the other.We can safely say that the firm that has the highest debt ratio is the riskier of the two firms.
• D)A firm that has a current ratio that is significantly above the industry norm will,as a direct consequence,also have a significantly better return on assets than if its current ratio was below the industry norm.
• E)All of the above statements are true.

Evaluate the effectiveness of various government policies on saving and investment behaviors.

Examine the role of pessimism and expectations in economic downturns and recoveries.

Understand how investment tax credits can influence economic investment and recession.

Analyze the implications of time inconsistency in monetary policy.

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Definitions:

Suspensory Ligaments

Suspensory ligaments are fibrous tissues that support organs or parts, notably the lens of the eye, maintaining its position and shape.

Lens

A transparent, biconvex structure in the eye that focuses light rays onto the retina, allowing for clear vision at various distances.

Gustatory Receptors

Sensory receptors located on the tongue that detect taste.

Olfactory Receptors

Specialized nerve cells located in the nasal cavity that are responsible for detecting odors and sending information to the brain for processing.