Above Are Portions of the Balance Sheet and Income Statement

question 23

Multiple Choice

Above are portions of the balance sheet and income statement for two companies in 2008. 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 it employs 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 it employs than firm B.

---

Definitions:

Empowerment

Empowerment refers to the process of enabling individuals to take control over their decisions and actions, often leading to increased motivation and a sense of ownership.

Self-determination

The process by which a person controls their own life, particularly in relation to the goals they aspire to achieve, free from external control or influence.

Competence

Refers to the ability of an individual or organization to effectively perform or undertake a specific task, action, or job.

Impact

The effect or influence of one variable on another or on a specific outcome.