Above Are Portions of the Balance Sheet and Income Statement

question 106

Multiple Choice

Above are portions of the balance sheet and income statement for two companies in 2015.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.
• E)Asset turnover ratios indicate that firm A is generating less revenue per dollar of assets than firm B.

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Definitions:

Elements

Fundamental components or parts in a set or system.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed over a specific period of time.

Data Mining

The process of discovering patterns and knowledge from large amounts of data.

Useful Information

Information that is relevant and beneficial for understanding or solving a problem.