Total asset turnover:
A)determines the speed with which a company can turn its assets into cash to meet debts.
B)compares current (short-term)assets to current liabilities.
C)measures the most valuable asset of a company.
D)measures the amount of inventory that is required by a company at any point of time.
E)measures how well an organization uses all of its assets in creating sales.

Question

Quizplus · Accepted Answer

Total asset turnover measures how efficiently a company uses its total assets to generate sales revenue, indicating how well the company is utilizing its assets to produce sales.

Total Asset Turnover