Which One of the Following Best Indicates a Firm Is

question 95

Multiple Choice

Which one of the following best indicates a firm is utilizing its assets more efficiently than it has in the past?

• A)A decrease in the total asset turnover
• B)A decrease in the capital intensity ratio
• C)An increase in days' sales in receivables
• D)A decrease in the profit margin
• E)A decrease in the inventory turnover rate

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Definitions:

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).

Statement Of Cash Flows

A financial report showing the inflows and outflows of cash within a company over a specific period.

Net Income

The final amount a company earns after removing all outgoings and tax liabilities from its total income.

Indirect Method

A way of preparing a cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.