If Net Sales Revenue $\bold{rises}$ 5% While the Average Book Value of Fixed Assets Falls

question 38

Multiple Choice

If net sales revenue $\bold{rises}$ 5% while the average book value of fixed assets falls 5%:

• A)the fixed asset turnover ratio will rise.
• B)the fixed asset turnover ratio will fall.
• C)the fixed asset turnover ratio will stay the same.
• D)the impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.

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Definitions:

Alpha Motor Neurons

Nerve cells that innervate muscle fibers, responsible for initiating muscle contraction.

Muscle Spindle

A sensory receptor located in muscles that senses changes in muscle length and contributes to the control of muscle contraction.

Afferent Neurons

Nerve cells that carry sensory information from the body's periphery to the central nervous system.

Stretch Reflex

A muscle contraction in response to stretching within the muscle, serving as a protective mechanism to prevent overstretching.