Total assets turnover reflects the effects of turnover ratios for accounts receivable, inventory, and fixed assets.

Name: Total assets turnover reflects the effects of turnover ratios for accounts receivable, inventory, and fixed assets.
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Question

Quizplus · Accepted Answer

Total assets turnover takes the ratio of net sales to total assets, which includes all three categories of accounts receivable, inventory, and fixed assets. Therefore, it reflects the effects of their turnover ratios on the overall performance of the company.

Total Assets Turnover Reflects the Effects of Turnover Ratios for Accounts