Which of the following would most likely result in higher gross profit margin, assuming no fixed costs？
A 10% increase in the number of units sold.
B. A 5% decrease in production cost per unit.
C. A 7% decrease in administrative expenses.
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Under IFRS, interest expense would be classified as:
A. Either operating cash flow or financing cash flow.
B. Operating cash flow only.
C. Financing cash flow only.
A companys quick ratio is 1.2. If inventory were purchased for cash, the:
A. Numerator would decrease more than the denominator,resulting in a lower quick ratio.
B. Denominator would decrease more than the numerator,resulting in a higher current ratio.
C. Numerator and denominator would decrease proportionally,leaving the current ratio unchanged.
The write-off of obsolete equipment would be classified as:
A. Operating cash flow.
B. Investing cash flow.
C. No cash flow impact.
A companys current ratio is 1.9. If some of the accounts payable are paid off from the cash account, the:
A. Numerator would decrease by a greater percentage than the denominator,resulting in a lower current ratio.
B. Denominator would decrease by a greater percentage than the numerator,resulting in a higher current ratio.
C. Numerator and denominator would decrease proportionally,leaving the current ratio unchanged.
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