Which Financial Ratio Measures the Utilization of Plant and Equipment

question 20

Multiple Choice

Which financial ratio measures the utilization of plant and equipment?

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

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Definitions:

Price Elasticity

The measure of how sensitive the demand for a product or service is to changes in its price.

Positive Numbers

Numbers that are greater than zero, illustrating values that represent quantities or measurements.

Negative Numbers

Integers that are less than zero, often used to represent a deficit or decrease in mathematical operations and real-world contexts.

Harmful Sexual Disorder

A problematic pattern of sexual thoughts or actions that are dangerous or injurious to oneself or others, not officially recognized as a distinct diagnosis.