20 Views

Question : Assertion (A): The fixed asset turnover ratio aids in evaluating the stability of the company's long-term financial condition.
Reason (R): It displays the ratio of shareholders' funds to total long-term debt.

Option 1: Both (A) and (R) are true and (R) is the correct explanation of (A)

Option 2: Both (A) and (R) are true and (R) is not the correct explanation of (A)

Option 3: (A) is true, but (R) is false

Option 4: (A) is false, but (R) is true


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: (A) is true, but (R) is false


Solution : The fixed asset turnover ratio demonstrates the effectiveness of a company's current fixed assets in driving sales. A greater ratio suggests that management is making better use of its fixed assets.
How well a corporation uses its current fixed assets to generate sales is shown by its fixed asset turnover ratio.
Hence option 3 is the correct answer.

Related Questions

UPES B.Tech Admissions 2026
Apply
Ranked #43 among Engineering colleges in India by NIRF | Highest Package 1.3 CR , 100% Placements
XIME Bangalore PGDM Admission...
Apply
Accredited by AICTE & NBA | Highest CTC 14.7 LPA | Average CTC 10.5 LPA | Key Recruiters: EY, Deloitte, KPMG, HCL
Amity University Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University, Noida | Law...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Great Lakes Institute of Mana...
Apply
Application deadline: 4th Dec | Globally Recognized by AACSB (US) & AMBA (UK) | 17.8 LPA Avg. CTC for PGPM 2025
UPES Integrated LLB Admission...
Apply
Ranked #18 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS Rankings | 16 LPA Highest CTC
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books