Which Financial Indicator Measures the Ratio of Sales to Fixed

question 62

Multiple Choice

Which financial indicator measures the ratio of sales to fixed assets?

• A) days of inventory
• B) asset turnover
• C) average collection period
• D) fixed asset turnover
• E) inventory turnover

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Definitions:

Inflation

A continuous rise in the overall price level of goods and services within an economy over a period.

Unemployment

The condition in which a capable worker who is actively seeking employment is unable to find work.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.

Phillips Curve

An economic theory that suggests an inverse relationship between the level of unemployment and the rate of inflation.