提问

问题如下：

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:

选项：

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.

解释：

C is correct.

Impairment write-downs reduce equity in the denominator of the debt-to-equity ratio but do not affect debt, so the debt-to-equity ratio is expected to increase. Impairment write-downs reduce total assets but do not affect revenue. Thus, total asset turnover is expected to increase.

解析：长期资产减值，资产负债表上的资产减少，同时equity也会减少（因为利润表中会确认loss），负债不变，那么debt to equity ratio就变大，因为分母变小了。Asset turnover变大，因为分子revenue不受影响，但是分母asset会变小。