Question

Reducing administrative expenses would have a positive impact on a company's gross margin percentage. True or False

All other things the same, purchasing merchandise inventory would negatively affect the accounts receivable turnover ratio at a retailer. True or False

As the accounts receivable turnover ratio increases, the average collection period decreases. True or False

Liquidity refers to the proportion of operating income relative to sales revenue. True or False

One way to improve inventory turnover is to decrease average inventory. True or False

Answer 1

Reducing administrative expenses would have a positive impact on a company's gross margin percentage. False it comes after gross margin

All other things the same, purchasing merchandise inventory would negatively affect the accounts receivable turnover ratio at a retailer. False inventory doesnt impact ar ratio

As the accounts receivable turnover ratio increases, the average collection period decreases. True

Liquidity refers to the proportion of operating income relative to sales revenue. False it is profitability ratio

One way to improve inventory turnover is to decrease average inventory. True