Which of the Following Statements Is CORRECT

question 64

Multiple Choice

Which of the following statements is CORRECT?

• A) A decline in a firm's inventory turnover ratio suggests that it is improving both its inventory management and its liquidity position,i.e. ,that it is becoming more liquid.
• B) In general,it's better to have a low inventory turnover ratio than a high one,as a low one indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock.
• C) If a firm's fixed assets turnover ratio is significantly lower than the average for its industry,then it could be that the firm uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets.
• D) The more conservative a firm's management is,the higher the firm's total debt to total capital ratio is likely to be.
• E) The days sales outstanding ratio tells us how long it takes,on average,to collect after a sale is made.The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time.

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Definitions:

Private

An access modifier in object-oriented programming that restricts visibility or access to members of a class exclusively within that class.

Interface

A point of interaction between components, often used to define shared boundaries in software.

Instance Variables

Variables defined in a class for which a separate copy is created for each object of the class.

Primitive Variables

Primitive variables in computer programming are basic data types that hold values such as integers, booleans, and floating-point numbers, and are not objects.