Asset turnover calculations:
A)are made by dividing the average asset balance during the year by the sales for the year.
B)are made by dividing sales for the year by the asset balance at the end of the year.
C)communicate information about how promptly the entity pays its bills.
D)should be evaluated by observing the turnover trend over a period of time.

Question

Quizplus · Accepted Answer

Asset turnover calculations should be evaluated by observing the turnover trend over a period of time to assess how efficiently a company is using its assets to generate sales.

Asset Turnover Calculations