Which of the Following Statements Is Generally Incorrect from an Investor's

question 38

Multiple Choice

Which of the following statements is generally incorrect from an investor's perspective?

• A) A 1:1 current ratio is generally preferred over a 1.5:1 current ratio.
• B) A 20-day average collection period for accounts receivable is generally preferred over a 30-day average collection period.
• C) A 5% dividend yield is generally preferred over a 3% dividend yield.
• D) A 10% net margin is generally preferred over an 8% net margin.

---

Definitions:

Nucleotide Bases

The nitrogenous bases in DNA and RNA molecules that pair to form the structural foundation of nucleic acids; adenine, cytosine, guanine, thymine (DNA only), and uracil (RNA only).

DNA Replication

The process by which a double-stranded DNA molecule is copied to produce two identical DNA molecules.

Histone

Type of protein that associates with DNA and structurally organizes eukaryotic chromosomes.

Nucleosome

Unit of chromosomal organization: a length of DNA wound twice around histone proteins.