If Net Sales Revenue and the Average Book Value of Fixed

question 250

Multiple Choice

If net sales revenue and the average book value of fixed assets both rise 5%:

• A)the fixed asset turnover ratio will rise.
• B)the fixed asset turnover ratio will fall.
• C)the fixed asset turnover ratio will stay the same.
• D)the impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.

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