Abers reported average total assets of $10,965 million and net sales of $11,430 million. Its total asset turnover equals .96.
$11,430/$10,965 = 1.04

Question

Quizplus · Accepted Answer

The calculation of total asset turnover is incorrect. It should be net sales divided by average total assets, which would be:

$11,430 million / $10,965 million = 1.04

Therefore, the correct answer is A (True).

Abers Reported Average Total Assets of $10,965 Million and Net