Which of the Following Statements Regarding the Effects of a Business

Multiple Choice

Which of the following statements regarding the effects of a business decision on a financial ratio is true?

A) If a company is expanding its facilities,its fixed asset turnover ratio is likely to fall temporarily.
B) If a company extends its payment period for customers,its accounts receivable ratio is likely to rise.
C) If a company eases its credit granting policies,its days to collect ratio is likely to fall.
D) If a company builds up inventories,its days to sell ratio is likely to fall.