Of the Following Measures, the Best Measure for Evaluating Firm

question 34

Multiple Choice

Of the following measures, the best measure for evaluating firm efficiency in handling and using assets is __________.

• A) asset turnover
• B) return on assets
• C) profit margin
• D) return on equity

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Definitions:

Cash Only Credit Policy

A credit policy where a company does not extend credit and only accepts cash payments.

Net 30 Policy

A payment term used in business transactions that requires payment to be made in full within 30 days of the invoice date.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.