The Fixed Asset Turnover Ratio Is Influenced by ____

question 90

Multiple Choice

The fixed asset turnover ratio is influenced by ____.

• A) the length of time since acquisition
• B) the depreciation policies adopted by the firm
• C) the extent to which fixed assets are leased rather than owned
• D) All of these are correct

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing or the return on savings.

Present Value

The current financial value of a future financial sum or sequences of payments, assessed with a predefined rate of earnings.

Interest Rate

The cost of borrowing money or the return on savings, typically expressed as a percentage of the principal amount per year.

Discounting

The process of determining the present value of future cash flows by applying a discount rate to reflect time value of money and risk.