Kermit calculated his total asset turnover to be 1.13.This tells Kermit that:
A)every dollar of assets generates $1.13 in sales.
B)every dollar of sales costs Kermit $1.13 to generate.
C)every year he turns his inventory 1.13 times.
D)every dollar of assets generates $1.13 in profits.

Question

Quizplus · Accepted Answer

Total asset turnover ratio measures how efficiently a company generates revenue from its assets. In this case, a ratio of 1.13 indicates that for every dollar of assets, Kermit generates $1.13 in sales.

Kermit Calculated His Total Asset Turnover to Be 1