The Following Information Is Provided for Nguyen Company and Northwest

question 78

Multiple Choice

The following information is provided for Nguyen Company and Northwest Corporation. If Nguyen and Northwest are in the same industry and the industry average for asset turnover is equal to 1.20 times, which of the following statements is true?

• A)Nguyen is operating less efficiently than the industry average.
• B)Northwest is operating more efficiently than Nguyen.
• C)Both Nguyen and Northwest are operating more efficiently than the average company in their industry.
• D)The asset turnover does not address the question of efficient operations.

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Definitions:

Exports

Goods or services sent from one country to another for sale or exchange.

Imports

Goods and services that are brought into one country from another for sale.

Net Exports

The difference between a country's total exports of goods and services and its total imports, reflecting the trade balance.

U.S. Consumption

This term refers to the total value of all goods and services consumed within the United States over a specific time period.