Total asset turnover is used to evaluate:
A)The efficiency of management's use of assets to generate sales.
B)The necessity for asset replacement.
C)The number of times operating assets were sold during the year.
D)The cash flows used to acquire assets.
E)The relation between asset cost and book value.

Question

Quizplus · Accepted Answer

Total asset turnover is a ratio that measures a company's ability to generate sales from its assets. It measures the efficiency of management's use of assets to generate sales, indicating how well a company is using its resources to produce revenue.

Total Asset Turnover Is Used to Evaluate