Net sales divided by average total assets is called
A) inventory turnover.
B) receivables turnover.
C) rate of return on assets.
D) asset turnover.

Name: Net sales divided by average total assets is called A) inventory turnover. B) receivables turnover. C) rate of return on assets. D) asset turnover.
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Question

Quizplus · Accepted Answer

Net sales divided by average total assets is called asset turnover. This ratio indicates how efficiently a company is using its assets to generate sales.

Net Sales Divided by Average Total Assets Is Called