Asset utilization ratios are used to measure
A) the speed with which a company can turn its short-term assets into cash to pay off its short-term debts.
B) how much income a firm generates relative to its assets,equity,and sales.
C) how much debt the firm is using relative to other sources of financing.
D) the performance of the firm relative to others on a per-share basis.
E) how efficiently the firm uses its assets to generate $1 in sales.

Question

Quizplus · Accepted Answer

Asset utilization ratios (receivables turnover,inventory turnover,and total asset turnover)measure how well a firm uses its assets to generate $1 in sales.

Asset Utilization Ratios Are Used to Measure