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Which of the Following Statements Regarding the Fixed Asset Turnover

Question 34

Multiple Choice

Which of the following statements regarding the fixed asset turnover ratio is incorrect?


A) The numerator is net operating income.
B) The denominator is average net fixed assets.
C) It is used to assess a company's effectiveness in generating sales from its fixed assets.
D) It increases when a company sells a factory building for its book value.

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