Which of the Following Could Explain a Decrease in Net

question 22

Multiple Choice

Which of the following could explain a decrease in net operating asset turnover for a company?

• A)Switching from straight line to accelerated depreciation for financial reporting purposes
• B)An increase in the financial leverage of the company
• C)Addition of a new plant for production purposes
• D)Decrease cost of production inputs

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Definitions:

Decedent's Estate

The total property, assets, and debts left behind by an individual at the time of their death.

Administration

In a business context, it refers to the process of managing and operating a business or organization; in a legal context, it could refer to managing the estate of a deceased person.

Equitable Title

A right to receive legal title to property upon fulfilling specific conditions, often related to contracts or trusts.

Beneficiary

An individual or entity entitled to benefits or assets under a legal instrument or arrangement, such as a trust or will.