Net sales divided by average total assets is equal to the:
A)Profit margin.
B)Total asset turnover.
C)Current ratio.
D)Sales return ratio.
E)Return on total assets.

Name: Net sales divided by average total assets is equal to the: A)Profit margin. B)Total asset turnover. C)Current ratio. D)Sales return ratio. E)Return on total assets.
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Question

Quizplus · Accepted Answer

The ratio of net sales to average total assets is known as total asset turnover, which measures how efficiently a company is using its assets to generate sales.

Net Sales Divided by Average Total Assets Is Equal to The