The Asset Turnover Ratio

Multiple Choice

The asset turnover ratio

A) Is computed by dividing net sales (income statement account) by average total assets (statement of financial position account) .
B) Measures how efficiently a company is using its net sales to purchase and use fixed assets.
C) Measures how many dollars are invested in fixed assets per dollar of net sales.
D) All of the choices are correct regarding the asset turnover ratio.