问题如下:
Company M adopts the FIFO method while company N adopts the LIFO method. When the price tends to rise, company N will report a higher:
选项:
A. gross profit margin.
B. inventory turnover.
C. current ratio.
解释:
B is correct. When the price tends to rise, inventory balance of company N tends to be lower and the cost of sales tends to be higher, which will result in lower gross margin and higher inventory turnover (Inventory turnover= COGS/average inventory). Current ratio = current assets/current liabilities, lower inventory means lower assets, so the current ratio of company N is lower.
老师您好,a怎么理解,有的题目,选a是正确的,这道题B是对的也是没有问题的,就是不知道a怎么理解