The correct option is (a) sales; average book value of fixed assets.
The fixed asset turnover ratio is computed as sales divided by average book value of fixed assets.
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. No information can be gleaned from a high FAT ratio about a company's capacity to produce reliable earnings or cash flows.
The ratio of sales to the value of fixed assets is known as fixed-asset turnover. It shows how effectively the company is generating sales by utilizing its fixed assets.
A greater ratio is typically preferred since it suggests that the business is effective at producing sales or revenues from its asset base. A lower ratio suggests that a business is not utilizing its resources effectively and may be experiencing internal issues.
Learn more about fixed asset turnover ratio
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Answer:
The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. FALSE, the real effect of taxes is measured by the price elasticity of the demand and the supply.
When demand is inelastic and supply is elastic, the burden of a tax falls mainly on producers. FALSE, when the price elasticity of demand is inelastic and the price elasticity of supply is elastic, the burden of tax falls mainly on the consumers.
When demand is elastic and supply is inelastic, the burden of a tax falls mainly on consumers. FALSE, when the price elasticity of demand is elastic and the price elasticity of supply is inelastic, the burden of tax falls mainly on the suppliers.
An excise tax can distort incentives and create missed opportunities for mutually beneficial transactions. TRUE
<span>The greatest risk of insolvency</span> can be determined with a variety of factors.
Answer:
1.
Debit Credit
Retained Earnings ($0.75*3,100) $2,325
Dividend payable $2,325
2. "No Journal Entry Required"
3.
Debit Credit
Dividend payable $2,325
Cash $2,325
Explanation:
The following journal entries will be required to be made
1. Recording declaration of dividend
The Divine Apparel shall record the the following journal entry on October 1 in respect of dividend declared by it.
Debit Credit
Retained Earnings ($0.75*3,100) $2,325
Dividend payable $2,325
2.Record the entry on date of record
"No Journal Entry Required"
3.Record the payment of cash dividends
The Divine Apparel shall record the the following journal entry on October 31 in respect of dividend paid by it.
Debit Credit
Dividend payable $2,325
Cash $2,325
Answer:
A. <u><em>They request a bank loan.
</em></u>
D. <u><em>They agree to sell stocks.
</em></u>
E. <u><em>They issue bonds.
</em></u>
<u><em /></u>
Explanation:
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