All else the same, a firm's capital intensity ratio will increase if __________________.

A) Accounts payable decrease.
B) Net income increases.
C) Sales decrease.
D) Assets decrease.
E) Cost of goods sold increase.

Capital Intensity Ratio

A metric used to determine the amount of assets required to generate a dollar of revenue; higher ratios indicate more assets are needed.

Accounts Payable

Financial obligations or debts owed by a company to its creditors or suppliers for goods and services received.

Net Income

Refers to the total profit of a company after all expenses and taxes have been subtracted from revenue.