If a Company's Asset Turnover Ratio Decreased from 2017 to 2018,which

question 124

Multiple Choice

If a company's asset turnover ratio decreased from 2017 to 2018,which of the following conclusions can be made?

• A)The company was more efficient during 2018 in using its assets to produce profits.
• B)The company produced less sales in 2018 for each dollar invested in assets.
• C)The company was less profitable in 2017.
• D)The company's average total assets decreased for relatively stable sales in 2017 and 2018.

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Definitions:

Chi-Square Tests

A statistical test used to determine the significant difference between observed and expected frequencies in one or more categories.

Equality

The state or quality of being identical, equal, or equivalent in value, measure, significance, etc.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution, minus the number of parameters estimated.

Chi-Square Distribution

A statistical distribution that represents the distribution of the sum of the squares of k independent standard normal random variables, often used in hypothesis testing.