Which of the following statements is false?
A) A decrease in the asset turnover ratio results in a decrease in the return on assets ratio.
B) An increase in average total assets results in a decrease in both the asset turnover ratio and return on assets ratio.
C)A decrease in the asset turnover ratio results in a decrease in the net profit margin ratio.
D)An increase in the net profit margin ratio results in an increase in the return on assets ratio.

Question

Quizplus · Accepted Answer

A decrease in the asset turnover ratio does not directly affect the net profit margin ratio, as they measure different aspects of financial performance.

Which of the Following Statements Is False