An Asset Turnover Ratio of 1

Multiple Choice

An asset turnover ratio of 1.87 for a company indicates that:

A) the company is generating $1.87 of sales revenue for each dollar of long-term operating assets invested.
B) the company is generating $1.87 of net income for each dollar of retained earnings.
C) the company has $1.87 of long-term debt for each dollar of operating revenue earned.
D) the company has $1.87 of current assets for each dollar of fixed assets invested.