Which of the Following Transactions Would Not Increase the Fixed

question 77

Multiple Choice

Which of the following transactions would not increase the fixed asset turnover ratio?

• A)An increase in sales revenue.
• B)A profitable sale of fixed assets for cash.
• C)Selling manufacturing equipment for a loss.
• D)A decrease in operating expenses.

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Definitions:

Implied-in-Law Condition

A legally imposed condition in a contractual agreement, not explicitly stated, created to ensure fairness and justice, often derived from the nature of the agreement or parties' intentions.

Substantially Performed

A term indicating that the major and necessary tasks of a contract have been completed, even if minor details may have been omitted.

Commercial Impracticability

A legal defense that excuses the performance of a contract due to unforeseen and uncontrollable circumstances that make fulfillment excessively burdensome or impossible.

Financially Unsound Contract

A contract deemed as high-risk due to the financial instability or inability of one or more parties to fulfill their obligations.