Assume That a Particular Firm Has a Total Asset Turnover

question 101

Multiple Choice

Assume that a particular firm has a total asset turnover ratio lower than the industry norm. In addition, this firm's current ratio and acid test ratio also meet industry standards. Based on this information, we can conclude that this firm must have excessive

• A) accounts receivable.
• B) fixed assets.
• C) debt.
• D) inventory.

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