Question 1

The firm's asset turnover measures

Accepted Answer

A)  the value of assets held per dollar of shareholder equity. 
B)  the return the firm has earned on its past investments. 
C)  the firm's ability to sell a product for more than the cost of producing it. 
D)  how efficiently the firm is utilizing its assets to generate sales.

Question 2

Gross profit is calculated as:

Accepted Answer

A)  Total sales - cost of sales - selling, general and administrative expenses - depreciation and amortization 
B)  Total sales - cost of sales - selling, general and administrative expenses 
C)  Total sales - cost of sales 
D)  None of the above

Exam 2: Introduction to Financial Statement Analysis

The firm's asset turnover measures

Gross profit is calculated as: