If a Company's Asset Turnover Ratio Decreased from 2016 to 2017

question 163

Multiple Choice

If a company's asset turnover ratio decreased from 2016 to 2017, which of the following conclusions can be made?

• A) The company was more efficient during 2017 in using its assets to produce profits.
• B) The company produced less sales in 2017 for each dollar invested in assets.
• C) The company was less profitable in 2016.
• D) The company's average total assets decreased for relatively stable sales in 2016 and 2017.

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