Which One of the Following Formulas Represents an Asset Utilization

question 158

Multiple Choice

Which one of the following formulas represents an asset utilization ratio?

• A) Net income/Total assets
• B) Price per share/Earnings per share
• C) (Current assets - Inventory)/Current liabilities
• D) Sales/Net working capital
• E) Earnings before interest and taxes/Interest

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Definitions:

Nominal Performance

A minimal or token action that barely meets the terms of a contract, often used to avoid breaching the agreement.

Substitution

In law or economics, the act of replacing one party or element of a contract with another.

Rescission

The act of canceling or annulling a contract, returning the parties involved to their positions prior to the agreement.

Nominal Damages

Monetary damages awarded to a plaintiff in a very small amount, typically $1 to $5, to signify that the plaintiff has been wronged by the defendant even though the plaintiff suffered no compensable harm.