Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 9 - Reporting and Analyzing Long-Lived Assets - Questions - Page 483: 24

Answer

(a) Companies dealing in low value product like Grocery Store have low profit margin ratio, but high asset turnover ratio

Work Step by Step

(b) Companies selling luxury goods or jewelry etc. will have low asset turnover ratio, but high profit ratio
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