If Pizza Pizza Reports an Asset Turnover Ratio of 2

question 25

Multiple Choice

If Pizza Pizza reports an asset turnover ratio of 2.34 for 2013 and their competitor Pizza Hut reports 3.79 for their 2013 ratio, it means which of the following?

• A) Pizza Pizza is less able to pay off their current obligations with their current assets.
• B) Pizza Pizza is better able to pay their current obligations with their current assets.
• C) Pizza Pizza has been less effective in managing the use and level of its assets.
• D) Pizza Pizza has been more effective in managing the use and level of its assets.

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Definitions:

Lost

Refers to an item that has been misplaced and whose whereabouts are unknown.

Abandoned

Left without attention or care, often referring to property or places that are no longer maintained or inhabited.

Trade-Secret Protection

Legal practices and measures to safeguard a company's confidential business information from unauthorized access or theft.

Unlawful Appropriation

Refers to the illegal or unauthorized taking or use of someone else's property or funds.