Sweet Candies reduced its fixed assets this year without affecting the shop's operations, sales, or equity.This reduction will increase which of the following ratios?
I.Capital intensity ratio
II.Return on assets
III.Total asset turnover
IV.Return on equity
A)I and II only
B)II and III only
C)II, III, and IV only
D)I, II, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Reducing fixed assets while maintaining sales increases the return on assets and total asset turnover, as both are calculated using total assets in the denominator.

Sweet Candies Reduced Its Fixed Assets This Year Without Affecting