Which of the following statements is correct?

a.In the text, depreciation is regarded as auseof cash because it reduces fixed assets, which then must be replaced.

b.If a company uses some of its cash to pay off short-term debt, then its current ratio will always decline, given the way the ratio is calculated, other things held constant.

c.During a recession, it is reasonable to think that most companies' inventory turnover ratios will change while their fixed asset turnover ratios will remain fairly constant.

d.During a recession, we can be confident that most companies' DSOs (or ACPs) will decline because their sales will probably decline.

e.Each of the above statements is false.