The Asset Turnover Measures

question 54

Multiple Choice

The asset turnover measures

• A) how often a company replaces its assets.
• B) how efficiently a company uses its assets to generate sales.
• C) the portion of the assets that have been financed by creditors.
• D) the overall rate of return on assets.

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Definitions:

F-statistic

A value derived from an ANOVA (Analysis of Variance) test, used to determine if the means between two populations are significantly different.

Analysis of Variance (ANOVA)

A statistical method used to compare means of three or more samples.

Numerator

The top number in a fraction that represents the part of the whole being considered or counted.

Denominator

The bottom number in a fraction that represents the total number of equal parts the whole is divided into.