A total asset turnover measure of 1.03 means that a firm has $1.03 in:
A) total assets for every $1 in cash.
B) total assets for every $1 in total debt.
C) total assets for every $1 in equity.
D) sales for every $1 in total assets.
E) long-term assets for every $1 in short-term assets.

Question

Quizplus · Accepted Answer

A total asset turnover measure of 1.03 means that for every $1 in total assets, the company generates $1.03 in sales.

A Total Asset Turnover Measure of 1