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- Total asset turnover indicates the company's: A. Profitability.B. Ability to use its assets to generate sales.C. Liquidity.D. Debt positionThe return on total assets measures A. profitability by combining the effects of the profit margin and asset turnover. B.how efficiently a company uses its assets to generate sales. C.efficiency, profitability, and liquidity. D.liquidity.Under the Dupont Technique, which of the following is false? a. Dupont Technique reveals the factors that determines the firm’s return on asset. b. Asset management, as represented by the ratio of net sales and average equity, is one of the factors that is considered in deriving the return on assets. c. The Company’s assessment of asset utilization and profitability can be determined by the Dupont Technique. d.The return on asset is the computed by multiplying the return on sales and the asset turnover.
- What is the total asset turnover of Nezuko IncActivity measures are designed to quantify the impact of a firm’s ability toefficiently utilize its assets. Turnover ratios are the most common activitymeasures and are generally calculated for each of the following assets excepta. accounts receivable.b. inventory.c. cash.d. plant and equipment.Which of the following are not part of the components ofthe DuPont system for measuring and evaluating businessperformance?a. Return on sales.b. Residual income.c. Return on investment.d. Capital turnover.e. Number of patents.
- Assets are resources related to past transactions that are expected to provide a future economic benefit to the company. True FalseWhich of the following is NOT correct regarding the rate of return on assets? a. The rate of return on assets measures management’s ability to productively employ all its resources. b. The rate of return on assets measures the return on all assets used regardless of how the assets are financed. c. The rate of return on assets is a measure of profitability. d. The rate of return on assets measures the return on the investment made by the owners of the entity. is B the correct answer?Defi ning total asset turnover as revenue divided by average total assets, all else equal, impairment write-downs of long-lived assets owned by a company will most likely result in an increase for that company in: B . the total asset turnover but not the debt-to-equity ratio
- Which of the following would not explain the difference between current and non-current assets? A.The future benefit of current assets will generally be used up within the entity's operating cycle B.An expenditure is classified as a non-current asset if it is considered to be material C.The nature and intention of the business can help determine whether an expenditure should be classified as a non-current asset D.An asset is classified as non-current if it is intended to be used within the business for a considerable period of timeWhich of the following statements is true? a. The fixed asset turnover ratio assists managers in determining the estimated future capital expenditures that are needed. b. The average age of the fixed assets is computed by dividing accumulated depreciation by depreciation expense. c. If net sales increases, the fixed asset turnover ratio will decrease. d. A relatively low fixed asset turnover ratio signals that a company is efficiently using its assets.If a company reports a gain/(loss) from the sale of assets, as part of the net income on the income statement, and the net book value of those assets on the date of the sale is known, can the amount of the cash proceeds from the sale be determined? If so, how?