OBJECTIVE 7 TOPIC: The fixed asset turnover ratio to assess the efficiency of a company's use of its fixed assets. NOTE: The higher the ratio, the more efficiently a company is using fixed assets. 22. Define Fixed Asset Turnover and Fixed Asset Turnover Ratio: (Include how they are calculated) 23. What are the two possible ways that the ratio is affected? 1. 2. OBJECTIVE APP 1 TOPIC: Accounting for the Exchange of Similar Fixed Assets. NOTE: Sometimes businesses do not purchase assets with cash but exchange assets with other companies or trade in old equipment for new equipment. 24. Define the following terms: Boot: Trade-In Allowance: 25. What are the three steps to record the exchange of a fixed asset for a similar fixed asset? 1. 2. 3. OBJECTIVE 7 TOPIC: The fixed asset turnover ratio to assess the efficiency of a company's use of its fixed assets. NOTE: The higher the ratio, the more efficiently a company is using fixed assets. 22. Define Fixed Asset Turnover and Fixed Asset Turnover Ratio: (Include how they are calculated) 23. What are the two possible ways that the ratio is affected? 1. 2. OBJECTIVE APP 1 TOPIC: Accounting for the Exchange of Similar Fixed Assets. NOTE: Sometimes businesses do not purchase assets with cash but exchange assets with other companies or trade in old equipment for new equipment. 24. Define the following terms: Boot: Trade-In Allowance: 25. What are the three steps to record the exchange of a fixed asset for a similar fixed asset? 1. 2. 3