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.