40) A total asset turnover ratio of 3.5 indicates that: A) For every Si of sales, the company acquired $3.50 of assets during the period. B) For every $1 of assets, the company made $3.50 in net sales during the period. C) For each IS in assets, the company made a gross profit of $3.50 during the period. D) For each si of assets, the company made a net profit of $3.50. E) For every dollar in assets, the business paid $3.50 in expenses during the period.
Answer 1
Asset Turnover is a financial index that measures the efficiency
of a company’s use of its assets to generate revenue or revenue
for the company. A higher asset turnover rate implies that the
the business operates efficiently and is able to generate
income income using the assets at your disposal. Formula: Active
Revenue = Sales / Average Total Assets
ANSWER-B
For every dollar in assets, the company made $3.50 in net sales.
during the period