The ratio of net sales to assets measures how effectively a business is using its assets to generate sales.

Name: The ratio of net sales to assets measures how effectively a business is using its assets to generate sales.
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Question

Quizplus · Accepted Answer

The ratio of net sales to assets is known as asset turnover, and it is a measure of a company's efficiency in using its assets to generate revenue. The higher the asset turnover ratio, the more efficient the business is at using its assets to generate sales.

The Ratio of Net Sales to Assets Measures How Effectively