It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all of the firms being compared have the same proportion of fixed assets to total assets.
Answer the following statement true (T) or false (F)
False
Rationale: The FA turnover is Sales/FA, and it gives an indication of how effectively the firm utilizes its FA. The proportion of FA to TA is not relevant to this usage.
You might also like to view...
An SBU can be a company division or a product line within a division, but not a single product or brand
Indicate whether the statement is true or false
________ is a type of trademark dilution where a party uses another party's famous mark to designate a product or service in another market so that the unique significance of the famous mark is weakened.
A. Confusing B. Blurring C. Tarnishing D. Rusting
The Raw Materials Inventory account is debited when direct materials are issued for production
Indicate whether the statement is true or false
The combination of two or more corporations' total assets, title to which is taken by a newly created corporation, is a ________
a. voluntary dissolution b. liquidation c. merger d. consolidation