Total asset turnover is used to evaluate:
A) The relationship between asset cost and book value.
B) The number of times operating assets were sold during the year.
C) The necessity for asset replacement.
D) The efficiency of management's use of assets to generate sales.
E) The cash flows used to acquire assets.

Question

Quizplus · Accepted Answer

Total asset turnover measures how efficiently a company uses its assets to generate sales, indicating management's effectiveness in utilizing assets.

Total Asset Turnover Is Used to Evaluate