Question

In: Finance

The extent to which assets are used to support sales is indicated by which of the...

The extent to which assets are used to support sales is indicated by which of the following ratios:

liquidity ratios

asset utilization ratios

financial leverage ratios

profitability ratios

Solutions

Expert Solution

The total revenue earned for every dollar of assets owned by a company is calculated using asset utilization ratio.

So the extent to which assets are used to support sales is indicated by assets utilization ratio.

So correct answer is asset utilization ratios.


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