Which Ratio Assesses How Efficiently a Firm Uses Its Fixed

question 76

Multiple Choice

Which ratio assesses how efficiently a firm uses its fixed assets?

• A)Capital intensity ratio
• B)Current ratio
• C)Average collection period
• D)Fixed asset turnover

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Definitions:

Decimal Equivalent

The decimal form of a fraction, representing the same value as the fraction but in decimal notation.

Percent Equivalent

The percentage representation of a fraction or decimal, used to compare rates, efficiencies, or proportions across different contexts.

Five-figure Accuracy

A level of precision where a number is accurate to the fifth digit.

Accurate

Characterized by preciseness and exactness in details or measurements.