A Company Had Average Total Assets of $887,000

question 65

Multiple Choice

A company had average total assets of $887,000.Its gross sales were $1,090,000 and its net sales were $1,000,000.The company's total asset turnover equals:

• A)0.81.
• B)0.89.
• C)1.09.
• D)1.13.
• E)1.23.

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Definitions:

Quarterly Revenues

The total income generated by a company during a three-month period from its business activities.

Circle Graph

A circular chart divided into sectors, each representing a proportion of the total; also known as a pie chart.

Sales Revenues

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Prescription Medicine

Medications that can only be obtained with a written order from a licensed healthcare provider.