Financial Reporting and Analysis Q176

0. Which of the following statements is most accurate?

A
If revenue grows more quickly than assets, the company’s efficiency may be improving.
B
If inventory grows slower than revenue, the company is likely to face an operational problem with obsolescence.
C
If net income is growing faster than revenue, the company’s efficiency is declining.

Answer
Comment
Array

Option : A
Explanation : Statement B is incorrect because the company is likely to face an operational problem with obsolescence if the inventory grows more quickly that revenue. Statement C is incorrect because if net income is growing faster than revenue, the company’s profitability increases.

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