Above are portions of the balance sheet and income statement for two companies in 2008. Based upon this information, which of the following statements is most likely to be true?
A) Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B.
B) Fixed asset turnover ratios indicate that firm A generating fewer sales for the assets it employs than firm B.
C) Both asset turnover ratios and fixed asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B.
D) Fixed asset turnover ratios indicate that firm A generating more sales for the assets it employs than firm B.

Question

Above are portions of the balance sheet and income statement for two companies in 2008. Based upon this information, which of the following statements is most likely to be true?
A) Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B. 
B) Fixed asset turnover ratios indicate that firm A generating fewer sales for the assets it employs than firm B. 
C) Both asset turnover ratios and fixed asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B. 
D) Fixed asset turnover ratios indicate that firm A generating more sales for the assets it employs than firm B.

Quizplus · Accepted Answer

The Answer of   Above are portions of the balance sheet and income statement for two companies in 2008. Based upon this information, which of the following statements is most likely to be true?
A) Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B. 
B) Fixed asset turnover ratios indicate that firm A generating fewer sales for the assets it employs than firm B. 
C) Both asset turnover ratios and fixed asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B. 
D) Fixed asset turnover ratios indicate that firm A generating more sales for the assets it employs than firm B.

Above Are Portions of the Balance Sheet and Income Statement