Which of the Following Is the Correct Formula for Asset

question 102

Multiple Choice

Which of the following is the correct formula for asset turnover ratio?

• A)Net sales ÷ Average total assets
• B)Net sales ÷ Cost of goods sold
• C)Net Sales ÷ Net assets
• D)Net profit ÷ Net sales

Understand the distinction and applications of accrual and cash basis accounting.

Analyze and report profits or losses from discontinued operations, including tax effects.

Calculate and report revenue from redeemable instruments like gift certificates.

Execute and understand the purpose of closing entries in preparing financial statements.

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Definitions:

Snake River Plain

A geographical feature in the U.S. state of Idaho, characterized by a vast area of flatland through which the Snake River flows.

Hot Spot

An area of volcanic activity believed to be fueled by a section of the mantle beneath it that is significantly hotter than the mantle surrounding it.

Bonneville Salt Flats

A vast salt flat located in Utah, USA, known for its flat, expansive landscapes and as a site for land speed record attempts.

Terrane

A fragment of crustal material formed on, or broken off from, one tectonic plate and accreted or sutured to crust lying on another plate.