When a Company Records Fictitious Revenues, What Is the Effect

question 36

Multiple Choice

When a company records fictitious revenues, what is the effect on asset turnover ratio?

• A) The ratio increases
• B) The ratio decreases
• C) No effect
• D) The ratio might increase or decrease depending upon the transaction

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Definitions:

Atherosclerosis

Condition in which arteries stiffen, and the walls accumulate cholesterol and fat plaques, which reduce blood flow; a cause of heart disease.

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Hostility

The expression of unfriendliness or opposition, often characterized by anger, aggression, or resentment towards others.

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