Which of the Following Statements Is NOT True of the Asset

question 27

Multiple Choice

Which of the following statements is NOT true of the asset turnover ratio?

• A) Asset turnover ratio measures the dollar amount of sales per dollar of assets that the firm has.
• B) The fixed assets turnover ratio is less significant for equipment-intensive manufacturing industry firms than the total assets turnover ratio.
• C) The higher the total asset turnover, the more efficiently management is using total assets.
• D) The ratio is quite useful in identifying the inefficient use of current and long-term assets.

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Definitions:

Assignment Symbol

A symbol used in programming languages to assign a value to a variable, typically represented by "=".

Relational Symbol

A symbol used in programming and mathematics to compare two values; examples include >, <, ==, !=.

Nested If Statement

An If statement that is contained within another If statement, allowing for more complex decision-making processes with multiple conditions.

Second If-Else Statement

A subsequent conditional statement in a program that executes one block of code if its condition is true, otherwise executes another block of code.