Which of the Following Statements Is Correct

question 18

Multiple Choice

Which of the following statements is correct?

• A) An expense to sales ratio of 10% in year 1 and 15% in year 2 indicates that management policies to control expenses have been successful.
• B) In general, the faster the turnover of inventory the lower the profitability of the business.
• C) A gross profit ratio that is increasing over time indicates an increase in the margin between the purchase price and the selling price of goods.
• D) The formula for the inventory turnover ratio is sales divided by average inventory.

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Definitions:

Slow-Wave Sleep

A deep stage of sleep characterized by low frequency and high amplitude brain waves, essential for physical and mental restoration.

Non-REM Dreams

Dreams that occur during non-rapid eye movement (non-REM) stages of sleep, typically less vivid than REM sleep dreams.

Poor Sleeping Habits

Unhealthy patterns of sleep that can negatively impact physical and mental health, including irregular bedtimes and inadequate sleep duration.

Major Depressive Disorder

Mood disorder, characterized by extremely depressed moods or a loss of interest in normally pleasurable activities, that persists for two weeks or more.