Which of the Following Ratios Is Used to Evaluate How

question 108

Multiple Choice

Which of the following ratios is used to evaluate how efficient a company is in using its fixed assets to generate revenues?

• A)Current ratio
• B)Debt-to-assets ratio
• C)Return on fixed assets ratio
• D)Fixed asset turnover ratio

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Definitions:

Seller and Lessor

Terms referring to parties in transactions where goods are sold (seller) or property is leased (lessor) to another party.

Specific Performance

A legal remedy in contract law requiring the breaching party to fulfill the exact terms of the contract, rather than merely compensating the aggrieved party with damages.

Sale of Goods

A transaction in which property consisting of tangible personal items is transferred from seller to buyer for a price.

Reselling the Defective Fixtures

The act of selling goods that have flaws or defects not corrected by the seller, often at a reduced price.