__________ Best Explains a Ratio of Sales/average Net Fixed Assets

question 44

Multiple Choice

__________ best explains a ratio of sales/average net fixed assets that exceeds the industry average.

• A)The firm expanded plant and equipment in the past few years
• B)The firm makes less efficient use of assets than competing firms
• C)The firm has a substantial amount of old plant and equipment
• D)The firm uses straight-line depreciation If the firm has more old plant and equipment than competing firms, the denominator is deflated, thus producing a higher than average ratio.

---

Definitions:

Evaporation

The process by which water changes from a liquid to a gas or vapor, often contributing to the hydrologic cycle and weather patterns.

Precipitation

Any type of water, whether in liquid or solid state, that descends from clouds and makes contact with the Earth's surface, encompassing rain, snow, sleet, and hail.

Solar Energy

1. Electromagnetic energy from the Sun. 2. Energy that uses the Sun’s electromagnetic energy to heat buildings, heat water, or generate electricity.

Internal Heat

Heat produced within a planetary body, originating from radioactive decay and residual heat from planetary formation.