Jasper United Had Sales of $21,000 in 2011 and $24,000

question 39

Multiple Choice

Jasper United had sales of $21,000 in 2011 and $24,000 in 2012.The firm's current accounts remained constant.Given this information,which one of the following statements must be true?

• A)The total asset turnover rate increased.
• B)The days' sales in receivables increased.
• C)The net working capital turnover rate increased.
• D)The fixed asset turnover decreased.
• E)The receivables turnover rate decreased.

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Definitions:

Downward-Sloping

A term often used to describe a curve or line on a graph that decreases from left to right, indicating a negative relationship between two variables.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied responds infinitely at a particular price level.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in consumers' income.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level.