Name: FAC1601 Assignment 4 Due 22 October 2024 - StudyPass
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FAC1601 Assignment 4 Due 22 October 2024

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FAC1601-24-S2  Welcome Message  Assessment 4
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Question 1
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An increase in the inventory-holding period may indicate:
a. A decrease in the number of days required to sell inventory.
b. An increase in cash ow.
c. Funds being tied up in inventory for a longer period.
d. Ecient inventory management.
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Question 2
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What is one of the limitations of ratio analysis?
a. It is only useful for small businesses.
b. It provides real-time cash �ow information.
c. It requires extensive industry knowledge for effective interpretation.
d. It guarantees accurate projections of a company’s future �nancial position.