A decrease in total asset turnover will result in__________in the return on equity.
A) an increase
B) an undetermined change
C) a decrease
D) no change

Question

A decrease in total asset turnover will result in__________in the return on equity. 
A) an increase
B) an undetermined change
C) a decrease
D) no change

Quizplus · Accepted Answer

A decrease in total asset turnover means that the company is generating fewer sales with each dollar of assets. This could be due to a variety of factors, such as lower sales or inefficient use of assets. As a result, the answer is a decrease.

A Decrease in Total Asset Turnover Will Result In__________in the Return