What Ratio Will Definitely Increase When a Firm Increases Its

question 78

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:

Basal Level

The minimum level of stimulus intensity necessary for detection or the base level of functioning in metabolic or physiological processes.

Ceiling Level

The maximum performance level beyond which a test or measurement cannot accurately assess, indicating that the test may not be challenging enough for some individuals.

Crystallized Intelligence

As identified by Raymond Cattell, learned intelligence that tends to increase over time.

Fluid Intelligence

As identified by Raymond Cattell, a type of innate intelligence.