Which of the Following Statements Is False

question 75

Multiple Choice

Which of the following statements is false?

• A) A decrease in the asset turnover ratio results in a decrease in the return on assets ratio.
• B) An increase in average total assets results in a decrease in both the asset turnover ratio and return on assets ratio.
• C)A decrease in the asset turnover ratio results in a decrease in the net profit margin ratio.
• D)An increase in the net profit margin ratio results in an increase in the return on assets ratio.

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Definitions:

Industrialization

The process of transforming economies from primarily agricultural to one based on the manufacturing of goods, typically leading to economic growth and development.

Capital Resources

Assets such as machinery, buildings, and equipment used to produce goods and services.

Per Capita Income

The per capita income in a particular area or country, found by taking the total revenue generated in that area and dividing it by the population size.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine the relative value of the currencies.