The ________ ratio measures the small company's ability to generate sales in relation to its assets.
A)net sales-to-working capital
B)net sales-to-total assets
C)average collection period
D)average inventory turnover

Question

Quizplus · Accepted Answer

Net sales-to-total assets ratio measures how much revenue a company is generating in relation to the assets it possesses. This ratio shows the efficiency of how well a company is utilizing its assets to generate sales.

The ________ Ratio Measures the Small Company's Ability to Generate