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Other Things Being Equal, a Decrease in Total Asset Turnover

question 178

Multiple Choice

Other things being equal, a decrease in total asset turnover will result in ________ in the return on total assets.

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Definitions:

Operating Asset

Resources owned by a company that are used in its day-to-day operations to generate revenue, such as machinery, buildings, and equipment.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting its liabilities.

Return on Investment

A profitability metric that measures the gain or loss generated on an investment relative to the amount of money invested.

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