Asked by
Angela Croney
on Nov 14, 2024Verified
The asset turnover is computed by dividing
A) net income by average total assets.
B) net sales by average total assets.
C) net income by ending total assets.
D) net sales by ending total assets.
Asset Turnover
A financial ratio indicating how efficiently a company uses its assets to generate sales.
Average Total Assets
A measure that calculates the mean value of a company's assets over a specific period, often used to assess how efficiently these assets are used.
Net Sales
The total revenue from goods or services sold less returns, allowances, and discounts.
- Understand the concept of asset turnover and its calculation.
Verified Answer
SK
Learning Objectives
- Understand the concept of asset turnover and its calculation.