The fixed asset turnover ratio is used to evaluate:
A)how well management uses long-lived tangible assets to generate revenues.
B)whether there are enough fixed assets to pay its current liabilities.
C)the frequency in which fixed assets are sold.
D)the proportion of fixed assets relative to total assets.

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio indicates dollars of revenue generated for each dollar invested in fixed assets (long-lived tangible assets).A higher ratio implies greater efficiency.

The Fixed Asset Turnover Ratio Is Used to Evaluate