The Long-Term Asset Turnover Ratio Helps the Analyst Identify Efficiency

question 95

True/False

The long-term asset turnover ratio helps the analyst identify efficiency gains from improved accounts receivable and inventory management.

---

Definitions:

Compound Annual Return

The annualized average percentage rate of return that accounts for the compounding of interest over a period of time.

Diversified Equity Mutual Fund

A mutual fund that invests in a wide range of equities from various sectors to reduce investment risk.

Canadian Companies

Businesses that are registered, operated or have a significant presence in Canada.

Compounded Quarterly

A method of calculating interest in which the interest is compounded quarterly, being added to the principal amount four times annually.