Which of the Following Statements Regarding the Fixed Asset Turnover

question 9

Multiple Choice

Which of the following statements regarding the fixed asset turnover ratio is incorrect?

• A)The numerator is net operating income.
• B)The denominator is average net fixed assets.
• C)The ratio is used to assess a company's effectiveness in generating sales from its fixed assets.
• D)The ratio increases when a company sells a factory building for a gain.

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Definitions:

Team Contributions

The collective efforts and inputs provided by all members of a team towards achieving a common goal or completing a project.

Politically

In a manner related to the government, public affairs, or the administration of the state or other political unit.

Misuse Of Resources

The improper, inefficient, or unethically handling of materials, time, or assets, often resulting in waste or loss.

Organizational Culture

The common principles, convictions, and standards that affect how organization members engage with one another and with stakeholders.