Net Sales for Aaron Company Are $679,000 and Total Assets

question 95

Multiple Choice

Net sales for Aaron Company are $679,000 and total assets are $422,000. What is the asset turnover ratio?

• A) 1.50 times
• B) 1.61 times
• C) 0.62 times
• D) 2.32 times

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Definitions:

Wage Rate

Wage Rate is the standard amount of compensation for labor, paid on an hourly, daily, or piecework basis.

Labor Hired

The process of employing individuals to perform various tasks within a business or organization.

Inputs Employed

The resources, including labor, capital, and materials, used in the production of goods and services.

Additional Revenues

Income received that is above and beyond the standard or expected revenue streams.