Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A) A larger fixed asset turnover ratio is associated with firms that are more labor intensive and require smaller fixed asset investments.
• B) The fixed asset ratio cannot be compared across time for an individual company.
• C) A smaller fixed asset turnover ratio is associated with firms that are more labor intensive and require smaller fixed asset investments.
• D) The fixed asset ratio is not useful for comparing different companies.

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Definitions:

Median

A measure of central tendency in statistics, representing the middle value in a set of data when arranged in order.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean value.

Percentile Score

The percentage of people someone scores higher than on a scale or test; a score at the 90th percentile means someone scores higher than 90% of the people who took the scale.

Normal Distribution

A symmetrical bell-shaped distribution in which most of the data points cluster around the mean, with decreasing frequency toward the tails.