A firm with a total asset turnover lower than industry standard may have
A) excessive cost of goods sold.
B) insufficient fixed assets.
C) excessive debt.
D) insufficient sales.

Question

Quizplus · Accepted Answer

A firm with a total asset turnover lower than the industry standard likely has insufficient sales relative to its total assets, indicating it is not generating enough revenue from its assets.

A Firm with a Total Asset Turnover Lower Than Industry