A total asset turnover measure of 1.03 means that a firm has $1.03 in:
A)sales for every $1 in total assets.
B)total assets for every $1 in total debt.
C)total assets for every $1 in equity.
D)total assets for every $1 in cash.
E)long-term assets for every $1 in short-term assets.

Question

Quizplus · Accepted Answer

A total asset turnover ratio measures a company's ability to generate sales from its assets. A ratio of 1.03 indicates that the company generates $1.03 in sales for every $1 in assets.

A Total Asset Turnover Measure of 1