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:

Federal Court

Courts established by the federal government of a country that have jurisdiction over disputes involving federal laws, constitutional questions, or other specific cases defined by law.

Defendant

A party, which could be a person, company, or institution, under accusation or litigation in a judicial setting.

Plaintiff

The party who initiates a lawsuit in a court of law against another party, known as the defendant, in order to seek a legal remedy.

Myelin

A fatty substance that covers and protects nerve fibers in the brain and spinal cord, facilitating the rapid transmission of neural signals.