Question

In: Accounting

Total asset turnover is used to evaluate: Select one: a. The necessity for asset replacement. b....

Total asset turnover is used to evaluate:
Select one:
a. The necessity for asset replacement.
b. The efficient use of assets to generate sales.
c. The number of times operating assets were sold during the year.
d. The cash flows used to acquire assets.

Solutions

Expert Solution

b. The efficient use of assets to generate sales.

(Explanation :- Asset turnover ratio is a type of efficiency ratio that measures the value of your business’s sales revenue relative to the value of your company’s assets. It’s an excellent indicator of the efficiency with which a company can use assets to generate revenue)


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