Which of the Following Is True of Asset Turnover

question 43

Multiple Choice

Which of the following is true of asset turnover?

• A) It measures the efficiency with which a company uses its operating assets to generate sales.
• B) It measures the proportion of operating assets to total assets.
• C) It uses net purchases as a denominator in its calculation.
• D) It measures the profits generated by the fixed and current assets of the company.

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Definitions:

Megalith

Greek, “great stone.” A large, roughly hewn stone used in the construction of monumental prehistoric structures.

Massive Shaped Stone

Large stones that have been shaped and used in the construction of ancient structures and monuments, showcasing sophisticated engineering techniques.

Volcanic Rock

Rock formed from magma erupted from a volcano or solidified lava on the earth's surface.

Continent

One of the very large landmasses on Earth, generally identified by convention rather than any strict criteria, with seven commonly recognized: Africa, Antarctica, Asia, Europe, North America, Australia (Oceania), and South America.