The Measure That Indicates How Efficiently Assets Are Being Used

question 84

Multiple Choice

The measure that indicates how efficiently assets are being used to support sales is called the

• A) net profit margin.
• B) current ratio.
• C) book value.
• D) total asset turnover.

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Definitions:

Noncurrent Assets

Long-term assets not expected to convert into cash within one year, such as property, plant, and equipment, intangible assets, and long-term investments.

Investing Activities

Transactions and events that involve the purchase or sale of long-term assets and other investments not included in cash equivalents.

Operating Activities

Business actions that are directly related to the production and delivery of goods and services, which are fundamental to the company’s operations.

Cash Flow Per Share

A measure indicating the amount of cash flow generated by a company on a per-share basis, useful for assessing financial performance and liquidity.