Which of the Following Misstatements Would Cause the Asset Turnover

question 50

Multiple Choice

Which of the following misstatements would cause the asset turnover ratio to be overstated?

• A)Misclassifying an expense as an asset.
• B)Failing to adjust the unearned revenue account for amounts earned.
• C)Failing to accrue interest on a loan payable to the bank.
• D)Failing to accrue rent earned for the current period.

---

Definitions:

Coccyx

The small, triangular bone at the base of the spinal column, often referred to as the tailbone, which is the remnant of a human tail.

Internal Intercostal

Muscles located between the ribs that play a role in the forced expiration of air from the lungs.

Abdominal Wall

The layers of muscles and connective tissue that enclose the abdominal cavity and support its organs.

Rectus Abdominis

The Rectus Abdominis is a major muscle in the front of the abdomen, responsible for flexing the spine and helps in movements such as bending forward.