Question

In: Finance

3) If a company's current assets increase, what might we assume about their inventory levels? A)...

3) If a company's current assets increase, what might we assume about their inventory levels? A) It increased B) It decreased C) It stayed the same D) We don't have enough information to decide

4) A company can increase its current ration by: A) Increase current assets B) Decreasing current assets C) Increasing current liabilities D) Decreasing total liabilities

5) In trying to measure a company's effectiveness in earning an adequate return on sales we would use which groups of ratios? A) Profitability ratios B) Asset utilization ratios C) Liquidity ratios D) Debt utilization ratios

Solutions

Expert Solution

3) If a company's current assets increase what might we assume about their inventory levels?........Ans: d) We don't have enough information to decide

4) A company can increase its current ratio by......Ans: a) Increase current assets

5) In trying to measure a company's effectiveness in earning an adequate return on sales we would use which groups of ratios?....Ans: a) Profitability ratios


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