Which of the following statements regarding the asset turnover ratio is true?
A)The asset turnover ratio compares the amount of sales revenue for the period to the book value of assets at the end of the period.
B)An asset turnover ratio must be less than 1.
C)The higher the ratio,the less efficiently the company is using its assets.
D)This ratio is not expressed as a percentage.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements regarding the asset turnover ratio is true?
A)The asset turnover ratio compares the amount of sales revenue for the period to the book value of assets at the end of the period.
B)An asset turnover ratio must be less than 1.
C)The higher the ratio,the less efficiently the company is using its assets.
D)This ratio is not expressed as a percentage.

Which of the Following Statements Regarding the Asset Turnover Ratio