A Fixed Asset Turnover Ratio of 4

question 205

Multiple Choice

A fixed asset turnover ratio of 4.3 indicates that for every:

• A)$1 in sales revenue,the firm acquired $4.30 of assets.
• B)$1 in fixed assets,the firm earned $4.30 of net income.
• C)$1 in assets,the firm paid $4.30 of expenses.
• D)$1 in fixed assets,the firm generated $4.30 of net sales.

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Definitions:

Domestic Supplier

A supplier that operates within the same country as the purchasing entity, often preferred for logistical, economic, or regulatory reasons.

International Supplier

A vendor located in a different country from the one where the goods or services are consumed, providing global sourcing options.

New Market

An area or sector not previously entered or served by a company or industry, presenting opportunities for growth and expansion.

Products and Services

The tangible goods and intangible offerings that businesses provide to consumers in exchange for payment.