Given below are several ratios.Select the accounts or amounts that would be used in order to calculate the ratio.You will have more than one response to each ratio.Some accounts or amounts may not be used at all.
-Asset turnover ratio
A) Market price per share
B) Net sales
C) Gross profit
D) Average total assets
E) Interest expense, net of tax
F) Netincome
G) Total liabilities
H) Total assets

Question

Given below are several ratios.Select the accounts or amounts that would be used in order to calculate the ratio.You will have more than one response to each ratio.Some accounts or amounts may not be used at all.
-Asset turnover ratio 
A) Market price per share
B) Net sales
C) Gross profit
D) Average total assets
E) Interest expense, net of tax
F) Netincome
G) Total liabilities
H) Total assets

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing net sales by average total assets. Therefore, we need to use net sales and average total assets to calculate the ratio.

Given Below Are Several Ratios