A Total Asset Turnover Ratio of 3

question 47

Multiple Choice

A total asset turnover ratio of 3.5 indicates that:

• A) For every $1 in sales, the firm acquired $3.50 in assets during the period.
• B) For every $1 in assets, the firm produced $3.50 in net sales during the period.
• C) For every $1 in assets, the firm earned gross profit of $3.50 during the period.
• D) For every $1 in assets, the firm earned $3.50 in net income.
• E) For every $1 in assets, the firm paid $3.50 in expenses during the period.

Develop skills in the preparation of journal entries related to the job order cost accounting cycle, including transactions for materials, labor, overhead, and the sale of completed jobs.

Learn to compute and adjust for over- or underapplied overhead and its implications on financial reporting.

Gain insights into the use of a web-based general ledger system in maintaining financial records and applying overhead in job order costing.

Understand the role of raw material, work in process, and finished goods inventories in job order cost accounting.

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Definitions:

Labor-Abundant

Referring to countries or regions that have a high supply of labor relative to capital, often resulting in lower labor costs.

World Trade Organization

An international organization that regulates international trade and ensures the smooth and free flow of trade between countries.

Trade Policy

Government regulations and strategies that determine how a country conducts trade with other nations, including tariffs, trade agreements, and import/export controls.

Import Tariffs

Taxes imposed by a government on goods brought into the country from abroad, often used to protect domestic industries from foreign competition.