Which of the Following Describes the Asset Turnover Ratio

question 62

Multiple Choice

Which of the following describes the asset turnover ratio?

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

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Definitions:

Financial Reports

Official records that outline the financial activities, status, and health of a business, organization, or individual.

Purchasing Decisions

The process involved in identifying and procuring goods and services based on need, quality, and price considerations.

In-House Attorneys

Lawyers employed directly by corporations or organizations to provide legal services and advice internally, as opposed to outside law firms.

Chief Executive Officers

Top executives responsible for the overall management, strategic direction, and decision-making in an organization or company.