A Company Has an Asset Turnover Ratio of 1

question 16

Multiple Choice

A company has an asset turnover ratio of 1.15.Which of the following statements is true?

• A)The company generates $1.15 of net income for every $1 in reported assets.
• B)The company buys assets more frequently than it sells them.
• C)The company generates $1.15 of sales revenue for every $1 in reported assets.
• D)This is an improvement over the previous period when the asset turnover rate was 1.7.

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Definitions:

Predators

Animals that hunt, kill, and consume other organisms for food.

Invasive Species

Non-native organisms that spread rapidly in new environments, often causing harm to native species, human health, and economies.

Generalists

Organisms that have a broad niche and can thrive in a wide variety of environmental conditions and can make use of a variety of different resources.

Species Diversity

The variety and abundance of different species within a given area, contributing to the complexity and resilience of ecosystems.