An Asset Turnover Ratio of 1

question 98

Multiple Choice

An asset turnover ratio of 1.75 can be interpreted as:

• A) $1.75 in sales are generated for every $1.00 of assets.
• B) $1.75 in additional assets are generated for every $1.00 of sales.
• C) $1.75 in assets are used to generate $1.00 of sales.
• D) $1.00 in sales are used to generate $1.75 in assets.

---

Definitions:

Future Taxpayers

Individuals or entities that will be responsible for contributing to government revenues through taxes in the future.

Promised Benefits

The guaranteed or expected advantages or returns, often from investments, insurance policies, or employment contracts.

Real Rate

refers to the interest rate adjusted for inflation, providing a more accurate measure of the true cost of borrowing or the real yield on an investment.

Tax Rate Structure

The way in which different rates of taxation are applied to different levels of income or other bases.