Which of the Following Describes the Asset Turnover Ratio

question 76

Multiple Choice

Which of the following describes the asset turnover ratio?

• A) Average total assets divided by net income
• B) Average total assets divided by sales
• C) Net sales divided by average total assets
• D) Net sales divided by net income

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Definitions:

Carrying Capacity

Carrying Capacity is the maximum population size of a species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Human Population Size

The number of individuals living in a specific area or globally, influencing resources, environment, and economic development.

External Cost

A cost that a business or economic activity imposes on third parties who are not part of the transaction, such as pollution.

Pollution

The introduction of contaminants into the natural environment that cause adverse changes, affecting air, water, and soil quality.