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Author Question: Assume inflation is prevalent.If we compare Company A, which chooses to show PPE at net book value, ... (Read 7 times)

frosh101

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Question 1

An increase in a firm’s inventory turnover ratio suggests that it is managing its inventory less efficiently and that its liquidity position is deteriorating; that is, it is becoming less liquid.

◦ true
◦ false

Question 2

Assume inflation is prevalent.If we compare Company A, which chooses to show PPE at net book value, with Company B, which shows PPE at fair value, we willprobablyfind that Company A has a higher fixed assets turnover ratio.

◦ true
◦ false
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Marked as best answer by frosh101 on Aug 7, 2023

BryanAultm

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Reply #1 on: Aug 7, 2023
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frosh101

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Reply 2 on: Aug 7, 2023
Gracias!

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