Multiple Choice
Bob's Toys has a fixed asset turnover rate of 1.2 and a total asset turnover rate of .84. Gerold's Toys has a fixed asset turnover rate of 1.1 and a total asset turnover rate of .96. Both companies have
Similar operations. Bob's Toys:
A) Is using its fixed assets more efficiently than Gerold's Toys.
B) Is using its total assets more efficiently than Gerold's Toys.
C) Is generating $1 in sales for every $1.20 in net fixed assets.
D) Is generating $1.20 in net income for every $1 in net fixed assets.
E) Has $.84 in total assets for every $.96 Gerold's has in total assets.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Calculate the current ratio given the following
Q364: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2575/.jpg" alt=" If
Q365: An Edmonton firm has a debt-equity ratio
Q366: Due to the difficulty of access the
Q367: A London Ontario firm has a net
Q369: The financial ratio measured as EBIT divided
Q370: Supreme Corporation's total current assets are valued
Q371: Freda's, Inc. has sales of $3,200, current
Q372: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2575/.jpg" alt="
Q373: The financial ratio measured as total assets