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.

Recognize concepts related to asset intensity and its implications for businesses.

Understand methods to measure and report asset efficiency and performance.

Understand how to calculate total asset turnover including its significance.

Recognize the various methods and rationales for depreciation, amortization, and depletion.

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Definitions:

Realistic Expectations

Expectations that are founded on practical and achievable standards, acknowledging the likelihood of outcomes based on facts and evidence.

Triangular Theory

A psychological theory that conceptualizes love in terms of three components: intimacy, passion, and commitment.

Intimacy

A near, intimate, and typically warm or affectionate connection with another individual or group.

Marriage Gradient

The tendency for women to marry men who are older, taller, or socially and economically better off.