Which of the Following Situations Is Most Likely to Explain

question 48

Multiple Choice

Which of the following situations is most likely to explain a net operating asset turnover that is higher than the industry norm?

• A)The company has more recently purchased fixed assets.
• B)The company uses FIFO while competitors use LIFO.
• C)The company uses the accelerated depreciation method while competitors use the straight line method.
• D)The company purchases more credit supplies than competitors.

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Definitions:

Erosional Remnant

A landform left standing after the surrounding terrain has been eroded away, often showcasing resistant geologic features.

Granite

A coarse-grained igneous rock composed mainly of quartz, feldspar, and mica, usually found in the continental crust.

Mesa

A flat-topped, steep-sided landform that rises sharply above the surrounding landscape, typical in arid and semi-arid regions.

Mantle Upwelling

The process where hotter and more buoyant material rises towards the Earth's surface from the mantle, often affecting tectonic activity.