Inventory turnover increases-average sales period decreases

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Reference no: EM13777961

1. As the inventory turnover increases, the average sales period decreases.

True

False

2. A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

True

False

3. All other things the same, when a customer purchases an item for cash, the accounts receivable turnover ratio increases.

True

False

4. Issuing common stock will decrease a company's financial leverage.

True

False

Reference no: EM13777961

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