Ratio of Sales to Assets Is Calculated By

question 45

Multiple Choice

Ratio of sales to assets is calculated by:

• A)dividing average total assets by net sales.
• B)dividing net sales by total current assets.
• C)dividing net sales by average total assets.
• D)dividing total current assets by net sales.

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Definitions:

Single-Step Statement

An income statement in which all revenues are summed together and all expenses are subtracted in a single step to calculate net income.

Multiple-Step Statement

A detailed income statement that separates operating revenues and expenses from non-operating ones, providing insights into different aspects of a company's performance.

Revenue Statement

A financial document detailing a company's revenue over a specific period, illustrating how the revenue translates into the net income.