A Fixed Asset Turnover Ratio Of.72 Means That

question 79

Multiple Choice

A fixed asset turnover ratio of.72 means that:

• A) For every $1 in total assets, a firm can generate $0.72 in net income.
• B) For every $1 in net fixed assets, a firm can generate $0.72 in net income.
• C) For every $1 in total assets, a firm can generate $0.72 in sales.
• D) For every $1 in net fixed assets, a firm can generate $0.72 in sales.
• E) For every $1 in net fixed assets, a firm can obtain $0.72 in debt.

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Definitions:

Choices

The act of selecting among available options or actions in decision-making processes.

Market Equilibrium

A market state where the supply of an item is exactly equal to its demand, leading to a stable price.

Opportunities

Situations that present possibilities for achieving positive outcomes or advantages.

Constraints

Limitations or restrictions that affect decision-making or the ability to pursue certain actions.