Which of the Following Statements Regarding the Asset Turnover Ratio

question 105

Multiple Choice

Which of the following statements regarding the asset turnover ratio is true?

• A)The asset turnover ratio compares the amount of sales revenue for the period to the book value of assets at the end of the period.
• B)An asset turnover ratio must be less than 1.
• C)The higher the ratio,the less efficiently the company is using its assets.
• D)This ratio is not expressed as a percentage.

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Definitions:

Fixed Price

A pricing strategy where the price of a product or service is agreed upon and does not change, regardless of market fluctuations.

Competition Tribunal

A specialized tribunal dealing with matters related to competition law, including mergers, monopolistic practices, and other issues that may affect fair competition.

Competition Act

Legislation intended to promote and maintain fair competition in the marketplace.

Enforcement

The act of compelling compliance with a law, rule, or obligation.