The fixed asset turnover ratio is influenced by ____.
A) the length of time since acquisition
B) the depreciation policies adopted by the firm
C) the extent to which fixed assets are leased rather than owned
D) All of these are correct

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio, which measures a company's efficiency in generating sales from its fixed assets, is influenced by various factors including the length of time since the assets were acquired, the depreciation policies adopted by the firm, and the extent to which fixed assets are leased rather than owned. All these factors can significantly affect the value of fixed assets on the balance sheet, and thus, impact the calculation of the fixed asset turnover ratio.

The Fixed Asset Turnover Ratio Is Influenced by ____