Which of the following statements MOST accurately describes asset turnover?
A) How efficiently a division uses its average assets to generate sales
B) How much operating income the division earns on every dollar of sales
C) How much return a division generates on average assets
D) How much extra income does a division generate above the minimum acceptable level

Question

Quizplus · Accepted Answer

Asset turnover measures how efficiently a division uses its average assets to generate sales. It is calculated by dividing sales by average total assets of a company.

Which of the Following Statements MOST Accurately Describes Asset Turnover