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:

Self-actualizers

Individuals who have realized and fulfilled their potential, achieving self-fulfillment and peak experiences as described by Maslow.

External Authority

The influence or control exerted by an outside force or body, often seen in organizational or societal structures.

Neo-Freudian

Pertains to psychologists and theorists who accepted Freud's basic ideas but modified them to include social and cultural factors in personality development.

Karen Horney

A German psychoanalyst known for her theories on neurosis, personality, and psychoanalytic social theory, emphasizing the importance of social relationships.