It Is Appropriate to Use the Fixed Assets Turnover Ratio

question 99

True/False

It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all the firms being compared have the same proportion of fixed assets to total assets.

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Definitions:

Short-Term Financial Plan

A strategy focusing on managing current liabilities and assets to meet short-term operational and financial goals.

External Financing

Funding acquired from sources outside the company, such as loans, stock issues, or bonds.