Question: The asset turnover ratio measures _ _ _ _ _ _ _ _ . The asset turnover ratio measures _ _ _ _ _ _

The asset turnover ratio measures ________.
The asset turnover ratio measures ________.
how efficiently a business uses its net profit to finance the assets
how the ending inventory helps increase the value of assets
how efficiently a business uses its sales to finance the assets
how efficiently a business uses its average total assets to generate sales

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

( 1 ) Write out the formula for each ratio you selected and show your calculations. Ratio of Liabilities to Owner's ( Stockholders ' ) Equity: Total liabilities / Shareholders ' equity. Year 2 0 Y 1...

Q:

Which of the following statements is true? Select one: O a. The Fixed Asset Turnover ratio measures how efficiently the firm is utilising its total assets O b. The Quick Ratio is a better measure of...

Q:

Please help with this test! Question 1 Upon the date of declaration of a dividend, the corporation has incurred a liability for the dividend . True False 3 points Question 2 A corporation generally...

Q:

2) Customer G. Smith owed Stonehollow Electronics $425. On April 27, 2018, Stonehollow determined this account receivable to be uncollectible and wrote off the account. The company uses the direct...

Q:

The asset turnover ratio measures ________. A. how the ending inventory helps increase the value of assets B. how efficiently a business uses its sales to finance the assets C. how efficiently a...

Q:

7 pretty sure its B? Thanks! The asset turnover ratio measures how efficiently a business uses its net profit to finance the assets how efficiently a business uses its average total assets to...

Q:

The asset turnover ratio measures A . how efficiently a business uses its average total assets to generate sales B . how efficiently a business uses its net profit to finance the assets C . how...

Q:

The asset turnover ratio measures how efficiently a business uses its average total assets to generate sales how efficiently a business uses its net profit to finance the assets how the ending...

Q:

14) The asset turnover ratio measures A) how efficiently a business uses its sales to finance the assets B) how efficiently a business uses its net profit to finance the assets C) how the ending...

Q:

I'm confused. 14) The asset turnover ratio measures A) how efficiently a business uses its sales to finance the assets B) how efficiently a business uses its net profit to finance the assets C) how...

Q:

Write a method named getLetterGrade. The method receives a grade average (double) returns the corresponding letter grade - use 90.0,80.0,70.0, 60.0 as cutoffs for A, B, C, D, F. Any grade average...

Q:

Of late, Steve has been feeling lethargic and frustrated. He is a moderate smoker who never exercises. He visits his doctor, and the doctor observes that he has also been extremely stressed recently...

Q:

Determine the key reasons why accountants, investors, and creditors found it challenging to determine the real assets and liabilities of the company.

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.