Which one of the following ratios identifies the amount of sales a firm generates for every $1 in assets?
A) current ratio
B) debt-to-equity
C) retention
D) asset turnover
E) return on assets

Question

Quizplus · Accepted Answer

Asset turnover ratio identifies the amount of sales generated for every $1 in assets. It is calculated by dividing revenue by total assets. A higher asset turnover ratio indicates that a company is using its assets more efficiently to generate revenue.

Which One of the Following Ratios Identifies the Amount of Sales