Asked by Akadiri Olalekan on Jun 13, 2024
Verified
The fixed asset turnover ratio measures a company's ability to use its property,plant,and equipment to generate revenues.
Property, Plant, And Equipment
Tangible long-term assets used in the operation of a business, such as buildings and machinery, not intended for resale.
- Acquire knowledge about the divergences and interdependencies amidst various turnover ratios.
Verified Answer
KB
Keshawn BlairJun 17, 2024
Final Answer :
True
Explanation :
The statement is true. The fixed asset turnover ratio is calculated by dividing net sales by average fixed assets, and it indicates how efficiently a company is using its fixed assets to generate revenue.
Learning Objectives
- Acquire knowledge about the divergences and interdependencies amidst various turnover ratios.
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