Assume That a Particular Firm Has a Total Asset Turnover

question 114

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 [blank].

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

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Definitions:

Breach

The violation or breaking of a law, duty, or contractual obligation either by commission or omission.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to an increased interconnectedness of the world's economies, cultures, and populations.

UCC

The Uniform Commercial Code represents a detailed collection of regulations that manage every commercial transaction across the United States, aiming to standardize the legislation related to sales and various commercial activities.

Sale of Goods

The sale of goods is a commercial transaction where the ownership of tangible personal property is transferred from seller to buyer for a price.