Business, 26.11.2019 20:31 jrfranckowiak

Assume that, prior to preparing adjusting entries at the end of the year, caterpillar corporation has a fixed asset turnover ratio of 3.4 based on average net fixed assets of $500,000,000. which of the following year-end adjustments would cause caterpillar's fixed asset turnover ratio to increase?

a. caterpillar accrues and capitalizes $50,000 for self-constructed assets.
b. caterpillar accrues a liability for ordinary repair costs in the amount of $50,000.
c. caterpillar writes down an impaired piece of equipment by $50,000.
d. caterpillar increases the sales returns & allowances by $50,000.

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Assume that, prior to preparing adjusting entries at the end of the year, caterpillar corporation ha...

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