If Firm A and Firm B are in the same industry and use the same production method and Firm A's asset turnover is higher than that of Firm B,then all else equal,we can conclude:
A)Firm A is more efficient than Firm B.
B)Firm A has a lower dollar amount of assets than Firm B.
C)Firm A has higher sales than Firm B.
D)Firm A has a lower ROE than Firm B.

Question

Quizplus · Accepted Answer

Asset turnover is a measure of how efficiently a firm uses its assets to generate sales. A higher asset turnover indicates that Firm A is more efficient in using its assets to produce revenue compared to Firm B.

If Firm a and Firm B Are in the Same