The following information is provided for Nguyen Company and Northwest Corporation. If Nguyen and Northwest are in the same industry and the industry average for the asset turnover ratio is equal to 1.20 times, which of the following statements is true?
A) Nguyen is operating more efficiently than the industry.
B) Northwest is operating more efficiently than Nguyen.
C) Both Nguyen and Northwest are operating more efficiently than the average company in their industry.
D) The asset turnover ratio does not address the question of efficient operations.

Question

The following information is provided for Nguyen Company and Northwest Corporation.  If Nguyen and Northwest are in the same industry and the industry average for the asset turnover ratio is equal to 1.20 times, which of the following statements is true?
A) Nguyen is operating more efficiently than the industry. 
B) Northwest is operating more efficiently than Nguyen. 
C) Both Nguyen and Northwest are operating more efficiently than the average company in their industry. 
D) The asset turnover ratio does not address the question of efficient operations.

Quizplus · Accepted Answer

The Answer of The following information is provided for Nguyen Company and Northwest Corporation.  If Nguyen and Northwest are in the same industry and the industry average for the asset turnover ratio is equal to 1.20 times, which of the following statements is true?
A) Nguyen is operating more efficiently than the industry. 
B) Northwest is operating more efficiently than Nguyen. 
C) Both Nguyen and Northwest are operating more efficiently than the average company in their industry. 
D) The asset turnover ratio does not address the question of efficient operations.

The Following Information Is Provided for Nguyen Company and Northwest