Which financial statement(s)do you need to calculate the asset turnover ratio?
A)only the income statement
B)only the balance sheet
C)both the income statement and the balance sheet
D)both the statement of cash flows and the income statement

Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing net sales (from the income statement) by average total assets (from the balance sheet). Therefore, both the income statement and balance sheet are needed to calculate this ratio.

Which Financial Statement(s)do You Need to Calculate the Asset Turnover