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:

Bearings

Machinery components used to reduce friction between moving parts and support rotational or sliding movements.

Motors

Machines that convert electrical energy into mechanical energy, typically used for powering devices, vehicles, or machinery.

Buyer Power

The influence that consumers have over a business or market, often determining pricing, availability, and features of products or services.

Supplier Power

The influence that suppliers have over the price and availability of their products or services, which can impact the market dynamics.