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stealth61 [152]
3 years ago
12

To increase total asset turnover, management must either increase sales or reduce total stockholders’ equity.A. TrueB. False

Business
1 answer:
8090 [49]3 years ago
7 0

Answer:

<u><em>FALSE</em></u>

Explanation:

Remember, total asset turnover is calculated using a ratio that measures how the management was able to use its assets to efficiently increase sales. Usually the total asset turnover is gotten by dividing a<em> company's sales </em>by its <em>total assets.</em>

<em />

To increase sales, management should <em>continue</em> to use its existing assets (not making purchase of any new asset), and at the same time reducing their purchases of inventory.

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