Which of the Following Is True of Asset Turnover Ratio

question 61

Multiple Choice

Which of the following is true of asset turnover ratio?

• A)It measures how efficiently a business uses its sales to finance the assets.
• B)It measures how efficiently a business uses its average total assets to generate sales.
• C)It measures how efficiently a business uses its net profit to finance the assets.
• D)It measures how the ending inventory helps in increasing the value of assets.

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