If Net Sales Revenue $\bold{rises}$ 5% While the Average Book Value of Fixed Assets Falls

question 38

Multiple Choice

If net sales revenue $\bold{rises}$ 5% while the average book value of fixed assets falls 5%:

• A)the fixed asset turnover ratio will rise.
• B)the fixed asset turnover ratio will fall.
• C)the fixed asset turnover ratio will stay the same.
• D)the impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.

---

Definitions:

Deep Femoral Artery

A large branch of the femoral artery that supplies blood to the deep structures of the thigh.

Pulmonary Vein

A large blood vessel that carries oxygenated blood from the lungs to the left atrium of the heart.

Pulmonary Artery

A major artery in the body that transports deoxygenated blood from the heart to the lungs for oxygenation.

Left Atrium

One of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it into the left ventricle.