Which of the following is true of asset turnover ratio?
A) It measures how efficiently a business uses its sales to finance the assets.
B) It measures how efficiently a business uses its average total assets to generate sales.
C) It measures how efficiently a business uses its net profit to finance the assets.
D) It measures how the ending inventory helps in increasing the value of assets.
Correct Answer:
Verified
Q124: On Jan 1st, 2015, Server Solutions paid
Q125: On October 1, 2015, Nurix Company purchased
Q127: Baker Inc. had reported the following details
Q128: Which of the following accounting methods is
Q130: Server Solutions paid $200,000 to acquire Tabletz
Q132: On October 1, 2015, Nurix Company purchased
Q134: Which of the following is true of
Q166: Which of the following is the correct
Q188: The asset turnover ratio is calculated by
Q199: The asset turnover ratio measures the amount
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents