Which of the following measures the amount of sales dollars generated from each dollar of capital invested in assets?
A)Return on sales
B)Return on investment
C)Accounts receivable turnover
D)Capital turnover

Question

Quizplus · Accepted Answer

Capital turnover measures the amount of sales generated from each dollar of capital invested in assets. Return on sales measures the amount of profit generated from each dollar of sales, while return on investment measures the overall return on capital invested, including both sales and expenses. Accounts receivable turnover measures how quickly a company collects its accounts receivable.

Which of the Following Measures the Amount of Sales Dollars