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A. A quality of income ratio will increase if a company's working capital management allows current assets such as inventory to increase out of control.
| A. A quality of income ratio will increase if a company's working capital management allows current assets such as inventory to increase out of control. | ||
| B. Variations in the ratio can be seasonal and are the result of sales fluctuations rather than reasons for alarm. | ||
| C. The quality of income ratio measures the portion of income that was generated in cash. | ||
| D. The quality of income ratio is useful when compared to industry competitors or to prior periods
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