Which Ratio Measures How Effectively a Company Is Using Assets

question 12

Multiple Choice

Which ratio measures how effectively a company is using assets to generate revenue?

• A)Net margin
• B)Plant assets to long-term liabilities
• C)Asset turnover
• D)Inventory turnover

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Definitions:

Storage Capacity

Refers to the maximum amount of data that can be held by a storage device or medium.

Limits

Boundaries or constraints that define the scope or extent of something.

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A type of long-term memory that involves the storage of general knowledge and facts about the world.

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An individual who takes part in a competition, aiming to win or achieve a high ranking.