A Company's Fixed Asset Turnover Ratio Is Equivalent to Its

question 63

True/False

A company's fixed asset turnover ratio is equivalent to its receivables turnover multiplied by the average net receivables,all divided by average net fixed assets.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.

Inventories

The complete list of items such as property, goods in stock, or the contents of a building, often held for sale in the regular course of a business.

Profit After Tax

The net income remaining after all taxes have been deducted from total revenue.

Unrealised Profit

Profit that has been made on paper through an investment but has not yet been cashed in by selling the asset.