If a Firm's Total Asset Turnover Ratio Is 2

question 67

Multiple Choice

If a firm's total asset turnover ratio is 2.0, then ____.

• A) its annual sales are less than its total assets
• B) it is possible that its fixed asset turnover ratio is 1.5
• C) its total assets are two times its annual sales
• D) its annual sales are two times its total assets

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Definitions:

Adjusted Gross Income

Adjusted Gross Income (AGI) refers to an individual's total gross income minus specific deductions, used to determine taxable income on an income tax return.

Medical Expenses

Costs for healthcare services that can include but are not limited to, treatments, diagnostics, and medications.

Long Form

Refers to more detailed versions of documents or forms that require extensive information, such as the IRS 1040 form for taxes.

1040 Form

A standard IRS form used by individuals to file their annual income tax returns.