A total asset turnover of .9 means that every
A) $1 in sales is supported by $9.00 of assets.
B) $0.90 in assets produces $1 in net earnings.
C) $1 in total assets is replaced on average every .9 years.
D) $1 in assets produces $0.90 in sales.

Question

Quizplus · Accepted Answer

A total asset turnover of .9 means that for every $1 in assets, the company generates $0.90 in sales. This ratio measures the efficiency with which a company uses its assets to generate sales.

A Total Asset Turnover of