Total asset turnover is used to evaluate
A) The efficiency of management’s use of assets to generate sales
B) The need for asset replacement
C) The cash flows used to acquire assets
D) The relation between asset cost and book value
Answer: A) The efficiency of management’s use of assets to generate sales
Explanation:
Total asset turnover is the ratio which measures the value of a company’s sales or revenues relative to the value of its assets. It is used to evaluate The efficiency of management’s use of assets to generate sales.
Total asset turnover is used to evaluate
