In Words, What Does a Total Asset Turnover of 1

question 289

Multiple Choice

In words, what does a total asset turnover of 1.5 times mean?

• A) For each $1 of sales generated the firm has total assets of $1.50.
• B) For each $1 of total assets, the firm generated $1.50 in sales.
• C) For each $1 of total assets, the firm generated $1.50 in net income.
• D) For each $1 of net income generated, the firm has total assets of $1.50.
• E) The firm completely replaces its fixed assets three times each year, on average.

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Definitions:

Greater Than

A mathematical term used to compare two values where one is larger than the other, often denoted by the symbol '>'.

Z-scores

Standardized scores that measure the distance of a data point from the mean, expressed in units of standard deviation.

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one.

Less Than

A mathematical term indicating that one quantity or number is smaller than another.