What is used to evaluate how well management uses a firm's assets to generate revenue?
A) efficiency ratio
B) liquidity ratio
C) acid-test ratio
D) current ratio
E) debt to owners' equity

Question

Quizplus · Accepted Answer

Efficiency ratios, such as the asset turnover ratio, measure how effectively a company uses its assets to generate sales or revenue, indicating how well management is utilizing the firm's assets.

What Is Used to Evaluate How Well Management Uses a Firm's