At Certain Times of the Year, Many Retail Companies Experience

Multiple Choice

At certain times of the year, many retail companies experience a rapid increase in inventory as they prepare for a period of high sales. All other things equal, this would cause:

A) both the quality of income ratio and the capital acquisitions ratio to fall.
B) the quality of income ratio to fall while the capital acquisitions ratio would remain the same.
C) the quality of income ratio to rise while the capital acquisitions ratio would remain the same.
D) both the quality of income ratio and the capital acquisitions ratio to rise.