Defining total asset turnover as revenue divided by average total assets, all else equal, impairment write-downs of

Question:

Defining total asset turnover as revenue divided by average total assets, all else equal, impairment write-downs of long-lived assets owned by a company will most likely result in an increase for that company in:

A. the debt-to-equity ratio but not the total asset turnover.

B. the total asset turnover but not the debt-to-equity ratio.

C. both the debt-to-equity ratio and the total asset turnover.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

Question Posted: