The Higher the Fixed Asset Turnover,the

question 105

Multiple Choice

The higher the fixed asset turnover,the

• A)more efficiently a company is using its fixed assets in generating sales
• B)more efficiently a company is using its intangible assets in generating sales
• C)less efficiently a company is using its fixed assets in generating sales
• D)more efficiently a company is using its current assets in generating sales

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Definitions:

Economic Life

The estimated period over which an asset is expected to be economically useful to the owner.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Annual Rate of Return

The percentage of profit or loss on an investment over one year.

Accounting Data

Information and records concerning the financial transactions and status of a business, including ledgers, journals, financial statements, and more.