Above Are Portions of the Balance Sheet and Income Statement

question 25

Multiple Choice

Above are portions of the balance sheet and income statement for two companies in 2008.Based upon this information,which of the following statements is most likely to be true?

• A)Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B.
• B)Fixed asset turnover ratios indicate that firm A generating fewer sales for the assets they employ than firm B.
• C)Both asset turnover ratios and fixed asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B.
• D)Fixed asset turnover ratios indicate that firm A generating more sales for the assets they employ than firm B.

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Definitions:

First-Class Tickets

Tickets that offer premium services and amenities to passengers, typically at a higher price.

Income

Funds that an individual or business receives, usually in exchange for providing a good or service or through investing capital.

Price

The financial commitment expected, necessary, or made as payment for an article.

Miles

A unit of distance measuring 5280 feet or approximately 1.609 kilometers.