Lower asset turnover ratios are generally indicative

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Reference no: EM131309721

Which of the following statements is TRUE and WHY?

A) Lower asset turnover ratios are generally indicative of more efficient asset management.

B) Borrowing money causes a corporation's return on net assets to increase because everything else being equal the higher the leverage, the higher return on net assets is.

C) Inventories are considered fixed assets because inventory levels remain fairly constant throughout the year.

D) Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense.

Reference no: EM131309721

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