Which Ratio Measures How Effectively a Company Is Using Assets

question 116

Multiple Choice

Which ratio measures how effectively a company is using assets to generate revenue?

• A)Net margin
• B)Asset turnover
• C)Plant assets to long-term liabilities
• D)Inventory turnover

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Definitions:

Matrix

A rectangular array of numbers, symbols, or expressions arranged in rows and columns, used in linear algebra to represent linear transformations and solve systems of linear equations, among other applications.

Determinant

A scalar value that can be computed from the elements of a square matrix and provides information about the matrix, such as whether it is invertible.

Minors

Submatrices formed by deleting one or more rows or columns from a matrix, used in the calculation of determinants and inverses.

Augmented Matrix

A matrix created by adding the columns of two specified matrices together, usually representing a system of linear equations.