A total asset turnover measure of 1.03 means that a firm has $1.03 in:

A) Total assets for every $1 in cash.
B) Total assets for every $1 in total debt.
C) Total assets for every $1 in equity.
D) Sales for every $1 in total assets.
E) Long-term assets for every $1 in short-term assets.

Question

Analee Herrick · Accepted Answer

Final Answer : D, Explanation :  Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue. A total asset turnover of 1.03 means that the company generates $1.03 in sales for every $1 in total assets.

A total asset turnover measure of 1.03 means that a firm has $1.03 in:

A) Total assets for every $1 in cash.
B) Total assets for every $1 in total debt.
C) Total assets for every $1 in equity.
D) Sales for every $1 in total assets.
E) Long-term assets for every $1 in short-term assets.

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Learning Objectives

Learning Objectives

Related questions

A total asset turnover measure of 1.03 means that a firm has $1.03 in:A) Total assets for every $1 in cash.B) Total assets for every $1 in total debt.C) Total assets for every $1 in equity.D) Sales for every $1 in total assets.E) Long-term assets for every $1 in short-term assets.

Definitions

Learning Objectives

Learning Objectives

Related questions

A total asset turnover measure of 1.03 means that a firm has $1.03 in:

A) Total assets for every $1 in cash.
B) Total assets for every $1 in total debt.
C) Total assets for every $1 in equity.
D) Sales for every $1 in total assets.
E) Long-term assets for every $1 in short-term assets.