Assume That a Particular Firm Has a Total Asset Turnover

question 14

Multiple Choice

Assume that a particular firm has a total asset turnover ratio lower than the industry norm.In addition,this firm's current ratio and fixed asset turnover ratio also meet industry standards.Based on this information,we can conclude that this firm must have excessive

• A)accounts receivable.
• B)fixed assets.
• C)debt.
• D)inventory.

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Definitions:

Anatomy

The branch of biology and medicine that studies the structure and organization of living organisms.

Structure

The arrangement or organization of parts to form an organism, system, or object, often determining its function and nature.

Physiology

The science that deals with the functions and processes of living organisms and their parts.

Homeostasis

The method through which living beings keep a consistent inner state regardless of variations in the outside world.