The Fixed Asset Turnover Ratio Is Used to Evaluate

question 190

Multiple Choice

The fixed asset turnover ratio is used to evaluate:

• A)how well management uses long-lived tangible assets to generate revenues.
• B)whether there are enough fixed assets to pay its current liabilities.
• C)the frequency in which fixed assets are sold.
• D)the proportion of fixed assets relative to total assets.

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Definitions:

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed legislation or interests, often regardless of merit.

Marginal Benefit

The additional satisfaction or value gained from consuming or producing one more unit of a good or service.

Tax Cost

The financial charges associated with taxation, including the actual tax payment as well as any related compliance or administrative expenses.

Resources Allocation

The process of distributing available resources among various competing needs and desires to achieve optimal efficiency.