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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Definitions:

Accessory

An item or object that adds to or complements something else, often used in fashion or technology.

Ovary Tissue

Biological tissue found within the ovary that functions in the production of eggs (ova) and hormones like estrogen and progesterone.

Capsules

In biology, a membranous structure that encloses certain organs or parts; in medicine, a solid dosage form in which the drug is enclosed within either a hard or soft soluble container or shell.

Single Carpel

Pertains to a single unit of the female reproductive part of a flower, encompassing the ovary, style, and stigma.