The Capital Intensity Ratio Is Generally Defined as Follows

question 22

Multiple Choice

The capital intensity ratio is generally defined as follows:

• A) Sales divided by total assets, i.e., the total assets turnover ratio.
• B) The percentage of liabilities that increase spontaneously as a percentage of sales.
• C) The ratio of sales to current assets.
• D) The ratio of current assets to sales.
• E) The amount of assets required per dollar of sales, or A0*/S0.

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