Sales divided by the value computed as current assets minus current liabilities is referred to as the:
A) Net working capital turnover.
B) Cash coverage ratio.
C) Equity multiplier.
D) Total asset turnover.
E) Capital intensity ratio.

Question

Quizplus · Accepted Answer

Net working capital turnover is calculated by dividing sales by net working capital, which is computed as current assets minus current liabilities.

Sales Divided by the Value Computed as Current Assets Minus