Which of the Following Statements Is CORRECT

question 65

Multiple Choice

Which of the following statements is CORRECT?

• A) The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio.
• B) If two firms have the same ROA,the firm with the most debt can be expected to have the lower ROE.
• C) An increase in the DSO,other things held constant,could be expected to increase the total assets turnover ratio.
• D) An increase in the DSO,other things held constant,could be expected to increase the ROE.
• E) An increase in a firm's total debt to total capital ratio,with no changes in its sales or operating costs,could be expected to lower its profit margin.

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Definitions:

Cognitive Subfield

A branch of psychology that explores mental processes such as perception, memory, language, and problem-solving.

Correlation

A quantitative indicator that illustrates how two variables move in relation with each other.

Lucky Shirt

A personal item or piece of clothing that an individual believes brings them good luck or favor, often worn during specific events or situations to influence outcomes positively.

Mood

A temporary emotional state that influences one's perception, behavior, and well-being, varying in intensity and duration.