The Asset Turnover Ratio

question 244

Multiple Choice

The asset turnover ratio

• A) Is computed by dividing net sales (income statement account) by average total assets (statement of financial position account).
• B) Measures how efficiently a company is using its net sales to purchase and use fixed assets.
• C) Measures how many dollars are invested in fixed assets per dollar of net sales.
• D) All of these answer choices are correct.

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Definitions:

Idiographic Approach

A research methodology that focuses on the individual, emphasizing unique personal experiences and subjective perceptions.

Common Traits

Characteristics that are shared by most members of a particular culture or society.

Trait Examination

The analysis or assessment of enduring characteristics that define an individual's personality.

Central Traits

Key personality characteristics that determine how individuals behave in most situations and how they are perceived by others.