Asset utilization ratios measure:
A)the performance of the firm relative to others on a per-share basis.
B)how much income a firm generates relative to its assets,equity,and sales.
C)how much debt the firm is using relative to other sources of financing.
D)the speed with which a company can turn its short-term assets into cash to pay off its short-term debts.
E)how well a firm uses its assets to generate each $1 of sales.

Question

Quizplus · Accepted Answer

Asset utilization ratios measure how efficiently a firm uses its assets to generate sales, indicating how well a firm uses its assets to generate each $1 of sales.

Asset Utilization Ratios Measure