1. Which of the following is not an asset utilization ratio?
(A) Inventory turnover
(B) Return on assets
(C) Fixed asset turnover
(D) Average collection period
2. If ABC’s sales are $1,000,000, while accounts receivable is $100,000, inventory is $45,000, and fixed assets are $132,000, what is ABC’s fixed asset turnover?
(A) 7.58
(B) 10.00
(C) 0.13
(D) 22.22
3. If XYZ’s receivables turnover is 4x, what does that mean?
(A) XYZ’s total sales are rotated four times a year.
(B) XYZ has a really good receivables turnover rate.
(C) XYZ is able to collect its receivables every 90 days, or 4 times a year.
(D) XYZ generates four times as much sales through receivables than sales through cash.
4. A decreasing average receivables collection period could be associated with
(A) Increasing sales.
(B) Decreasing sales.
(C) Decreasing accounts receivable.
(D) Increasing sales and decreasing accounts receivable.