The asset turnover is computed by dividing
A) net income by average total assets.
B) net sales by average total assets.
C) net income by ending total assets.
D) net sales by ending total assets.

Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing net sales by average total assets. This ratio gives a measure of how efficiently a company is using its assets to generate sales.

The Asset Turnover Is Computed by Dividing