A total asset turnover measure of 1.03 means that a firm has $1.03 in:
A)sales for every $1 in total assets.
B)total assets for every $1 in sales.
C)total assets for every $1 in total equity.
D)total assets for every $1 in cash.
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 firm is generating $1.03 in sales.

A Total Asset Turnover Measure of 1