The long-term asset turnover ratio helps the analyst identify efficiency gains from improved accounts receivable and inventory management.

Name: The long-term asset turnover ratio helps the analyst identify efficiency gains from improved accounts receivable and inventory management.
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Question

Quizplus · Accepted Answer

The long-term asset turnover ratio measures how efficiently a company uses its long-term assets to generate sales, not specifically how it manages accounts receivable and inventory, which are current assets.

The Long-Term Asset Turnover Ratio Helps the Analyst Identify Efficiency