Question (10) A business\'s sales have been stable over the past two years. The

Question

Question (10) A business's sales have been stable over the past two years. The ratio of its sales to net fixed assets has decreased during this time. Assuming no revaluation of fixed assets, which one of the following conclusions is the correct one to draw from this trend? O The business decreased fixed assets during the past two years. O The business added fixed assets even though sales were stable. O The business has not purchased any additional fixed assets beyond replacing existing assets O The business is no longer using accelerated depreciation

Explanation / Answer

The business added fixed assets even though sales were stable. Option 2 is correct

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