A Total Asset Turnover Ratio of 3

question 217

Multiple Choice

A total asset turnover ratio of 3.5 indicates that:

• A) For every $1 in sales,the firm acquired $3.50 in assets during the year.
• B) For every $1 in assets,the firm produced $3.50 in net sales during the year.
• C) For every $1 in assets,the firm earned gross profit of $3.50 during the year.
• D) For every $1 in assets,the firm earned $3.50 in earnings per share.
• E) For every $1 in assets,the firm paid $3.50 in dividends per sharE.

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Definitions:

Self-Perception Theory

A theory suggesting that individuals develop attitudes and opinions by observing their own behavior and concluding what attitudes must have caused them.

Cognitive Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, causing discomfort that leads to an attempt to change beliefs or behaviors to reduce the dissonance.

Balance

The ability to maintain bodily equilibrium or stability through the coordination of sensory functions and motor control.

Self-Perception Theory

A theory that suggests individuals develop their attitudes by observing their own behavior and concluding what attitudes must have caused them.