If a Business Entity Shows a High Asset Turnover Ratio,it

question 17

Multiple Choice

If a business entity shows a high asset turnover ratio,it means that

• A) It requires a high level of fixed assets to sustain is sales revenue year on year.
• B) The profit generated year after year represents a high percentage of assets.
• C) It always buys state of the art assets and discards older assets before they are fully obsolete.
• D) It uses a small amount of assets to generate relatively large amounts of sales revenue.

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Definitions:

Cleavage

The process by which a single cell divides into two or more daughter cells, often referred to in cellular biology and embryology.

Yolk Sac

The sac that holds the materials for the nutrition of the embryo.

Mesoderm

The middle layer of an embryo in early development, which will eventually give rise to the muscles, bones, and circulatory system.

Umbilical Cord

The rope-like connection between the fetus and the placenta. It contains the umbilical blood vessels.