If a Company's Asset Turnover Ratio Decreased from 2011 to 2012,which

question 91

Multiple Choice

If a company's asset turnover ratio decreased from 2011 to 2012,which of the following conclusions can be made?

• A)The company was more efficient during 2012 in using its assets to produce profits
• B)The company produced less sales in 2012 for each dollar invested in assets.
• C)The company was less profitable in 2011.
• D)The company over invested in assets in 2012.

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Definitions:

Price Increase

A rise in the cost of goods or services over time, affecting the purchasing power of money.

Money Income

The total amount of monetary earnings or receipts accrued by an individual or household in a given time period.

Market Demand Curve

A graphical representation showing the quantity of a good that all consumers in a market are willing to buy at each price level.

Income Effect

The change in an individual's consumption resulting from a change in real income, with shifts in purchasing power influencing spending behaviors.