Assuming two companies use the same accounting methods, other things being equal, the company with a higher fixed asset turnover ratio:
A) has a greater amount invested in fixed assets than a company with a lower fixed asset turnover ratio.
B) has less invested in fixed assets than a company with a lower fixed asset turnover ratio.
C) generates less sales revenue than a company with a lower fixed asset turnover ratio.
D) makes better use of its fixed assets to generate revenues than a company with a lower fixed asset turnover
Correct Answer:
Verified
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