A Company Had Average Total Assets of $600,000 and an Asset

question 94

Multiple Choice

A company had average total assets of $600,000 and an asset turnover ratio of 4. Which of the following is not true?

• A)Sales revenue was $2,400,000.
• B)The asset turnover ratio indicates $4 of sales were generated for every $1 invested in assets.
• C)The asset turnover ratio is an indication of the efficiency in the use of assets to generate revenues.
• D)The asset turnover ratio indicates the success of efforts to control expenses.

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