Dee's Has a Fixed Asset Turnover Rate of 1

question 48

Multiple Choice

Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91.Sam's has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88.Both companies have similar operations.Based on this information,Dee's must be doing which one of the following?

• A)utilizing its fixed assets more efficiently than Sam's
• B)utilizing its total assets more efficiently than Sam's
• C)generating $1 in sales for every $1.12 in net fixed assets
• D)generating $1.12 in net income for every $1 in net fixed assets
• E)maintaining the same level of current assets as Sam's

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Definitions:

Peer-to-peer Network

A network model where each participant (peer) has equal capabilities and either participant can initiate a communication session, often used for sharing files or resources.

Client/server Network

A network architecture where multiple client devices, such as computers or mobile phones, connect to a server to access shared resources.

Surface-Area-To-Volume Ratio

The proportion between the surface area of a body to its volume, affecting rates of heat loss, material exchange, and metabolic rates.

Absorption

The process by which substances are taken up and assimilated into the body of an organism.