An asset turnover ratio of 2.5 means that for every $1 in assets,the firm generates _____ in sales.
A)$0.50
B)$2.00
C)$2.50
D)$3.00

Name: An asset turnover ratio of 2.5 means that for every $1 in assets,the firm generates _____ in sales. A)$0.50 B)$2.00 C)$2.50 D)$3.00
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Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing sales by assets. A ratio of 2.5 means that for every $1 in assets, the firm generates $2.50 in sales.

An Asset Turnover Ratio of 2