The ratio that measures the productivity of total assets used is the:
A)rate of return on total assets.
B)return on sales.
C)inventory turnover.
D)rate of return on common stockholders' equity.

Question

Quizplus · Accepted Answer

The rate of return on total assets measures the productivity of all assets used, whereas the return on sales only measures the productivity of sales in relation to net income. Inventory turnover measures the efficiency of inventory management, and the rate of return on common stockholders' equity measures the profitability in relation to the investment of common shareholders.

The Ratio That Measures the Productivity of Total Assets Used