The Asset Turnover Ratio Is a Profitability Ratio

question 72

True/False

The asset turnover ratio is a profitability ratio.The asset turnover ratio is a profitability ratio that indicates the amount of sales revenue generated for each dollar invested in assets.

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Definitions:

Illusory Contract

An agreement that lacks a binding obligation from one or more parties, typically because terms are too vague or one party has the option not to perform their promise.

Subjective Standard

A legal standard based on an individual's personal feelings, tastes, or opinions, often used in determining the reasonableness of an action in legal cases.

Objective Impossibility

A situation where the performance of a contractual duty cannot be done by anyone because it is physically or legally impossible.

Subjective Impossibility

A situation in which it is impossible for an individual to perform a contractual duty due to personal inability or circumstances, despite the task being objectively possible.