All of the following ratios are related to efficiency except ________.
A) total asset turnover
B) fixed-asset turnover
C) average collection period
D) cash ratio

Question

Quizplus · Accepted Answer

Total asset turnover and fixed-asset turnover are both measures of how efficiently a company is using its assets to generate revenue. Average collection period measures how efficiently a company is collecting its accounts receivable. The cash ratio measures a company's ability to pay off its short-term debts, but it is not directly related to efficiency.

All of the Following Ratios Are Related to Efficiency Except