Question 5

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

True

False

Question 6

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

True

False

Question 7

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

True

False

Question 8

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

True

False