Assuming Two Companies Use the Same Accounting Methods,other Things Being

question 227

Multiple Choice

Assuming two companies use the same accounting methods,other things being equal,the company with a higher fixed asset turnover ratio:

• A)has a greater amount invested in fixed assets than a company with a lower fixed asset turnover ratio.
• B)has less invested in fixed assets than a company with a lower fixed asset turnover ratio.
• C)generates less sales revenue than a company with a lower fixed asset turnover ratio.
• D)makes better use of its fixed assets to generate revenues than a company with a lower fixed asset turnover ratio.

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Definitions:

Trachea

In insects, air tube located between the spiracles and the tracheoles. In tetrapod vertebrates, air tube (windpipe) that runs between the larynx and the bronchi.

Cephalothorax

A body region found in certain arthropods, including spiders and crustaceans, that combines the head and the thorax into one unit.

Fangs

Long, pointed teeth typically found in venomous snakes used to inject venom, or in some mammals for grasping and tearing.

Deuterostome

Group of coelomate animals in which the second embryonic opening is associated with the mouth; the first embryonic opening, the blastopore, is associated with the anus.