The asset turnover ratio is calculated by dividing
A)average total assets by sales revenue.
B)average total assets by profit.
C)profit by average total assets.
D)sales revenue by average total assets

Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing the sales revenue by average total assets, indicating how efficiently a company uses its assets to generate sales. Option D is the correct choice as it divides the sales revenue by the average total assets.

The Asset Turnover Ratio Is Calculated by Dividing