If net sales revenue rises 5% while the average book value of fixed assets falls 5%,the:
A)fixed asset turnover ratio will rise.
B)fixed asset turnover ratio will fall.
C)fixed asset turnover ratio will stay the same.
D)impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.

Question

Quizplus · Accepted Answer

If sales revenue (the numerator)rises and average net fixed assets falls (the denominator),the ratio will rise.

If Net Sales Revenue Rises 5% While the Average Book