In computing the asset turnover ratio, long-term investments are excluded from average total assets.

Name: In computing the asset turnover ratio, long-term investments are excluded from average total assets.
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Question

Quizplus · Accepted Answer

Long-term investments are not considered as part of the assets that are used to generate revenue in the normal course of business, so they are excluded from the calculation of the asset turnover ratio.

In Computing the Asset Turnover Ratio, Long-Term Investments Are Excluded