Asset management ratios do not measure which of the following:
A) productivity of fixed assets in terms of sales
B) how current assets are used in the generation of sales
C) earnings generated by efficient asset management
D) how much sales are generated from fixed assets

Question

Quizplus · Accepted Answer

Asset management ratios measure the efficiency of a company in managing its assets to generate sales and profits. Choices A, B, and D all relate to the measurement of asset productivity, which is a key aspect of asset management. However, earnings generated by efficient asset management are generally measured by profitability ratios, rather than asset management ratios.

Asset Management Ratios Do Not Measure Which of the Following