Which of the Following Is True of Fixed Asset Turnover

question 32

Multiple Choice

Which of the following is true of fixed asset turnover?

• A)It measures the efficiency with which a company uses its fixed assets to generate sales.
• B)It measures the proportion of fixed assets to total assets.
• C)It uses net purchases as a denominator in its calculation.
• D)It measures the profits generated by the fixed and current assets of the company.

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Definitions:

Negative Sanctions

Penalties or punishments imposed on individuals or groups to discourage nonconformity to societal norms or laws, ranging from informal disapproval to formal legal penalties.

Gesturing

The use of physical movements and signs, often made with the hands or body, to convey messages or express thoughts without using words.

Mores

Norms that carry great moral significance, are closely related to the core values of a cultural group, and often involve severe repercussions for violators.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior, with its precise definition being a matter of longstanding debate among specialists.