Which of the following statements is false?
A)A decrease in the total 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 total asset turnover ratio and return on assets ratio.
C)A decrease in the total 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 total asset turnover ratio does not necessarily result in a decrease in the net profit margin ratio, as these two ratios measure different aspects of a company's performance.

Which of the Following Statements Is False