Which of the following statements is CORRECT?

Group of answer choices

The inventory turnover ratio and days sales outstanding (DSO) are two ratios that are used to assess how effectively a firm is managing its current assets.

If a firm sold some inventory on credit as opposed to cash, then there is no reason to think that either its current or quick ratio would change.

If a firm has high current and quick ratios, then it must be managing its liquidity position well.

If a firm sold some inventory for cash and left the funds in its bank account, then its current ratio would probably not change much, but its quick ratio would decline.

If a firm sold some inventory on credit, then its current ratio would probably not change much, but its quick ratio would decline.