Which of the Following Is an Asset Utilization Ratio

question 36

Multiple Choice

Which of the following is an asset utilization ratio?

• A) Profit margin
• B) Inventory turnover
• C) Return on equity
• D) Return on assets

---

Definitions:

Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or produced first are sold, used, or disposed of first.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for the period.

Holding Gain

The increase in value of an asset held over a period, not realized until the asset is sold.