The ratio that measures the efficiency of all of a company's assets in generating sales is the:
A)Accounts Receivable turnover ratio.
B)total asset turnover ratio.
C)inventory turnover ratio.
D)fixed asset turnover ratio.

Question

Quizplus · Accepted Answer

The total asset turnover ratio is used to measure a company's efficiency in generating sales using all of its assets. It is calculated by dividing a company's sales by its total assets. This ratio helps to assess how effectively a company is using its assets to generate revenue. The higher the ratio, the more efficient a company is in using its assets to generate sales. Therefore, choice B is the best answer.

The Ratio That Measures the Efficiency of All of a Company's