In computing the ratio of net sales to assets, long-term investments are excluded from average total assets.

Name: In computing the ratio of net sales to assets, long-term investments are excluded from average total assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Long-term investments are not included in average total assets since they are not considered as part of the company's core operating assets. Therefore, they should be excluded when calculating the ratio of net sales to assets.

In Computing the Ratio of Net Sales to Assets, Long-Term