Asked by Bethany Allen on Jul 27, 2024
Verified
Asset turnover is computed by dividing net sales by average total assets.
Asset Turnover
A metric that evaluates how effectively a business utilizes its assets to produce sales income.
Net Sales
The revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.
- Learn to determine total asset turnover and recognize its significance.
Verified Answer
TD
Trever DesireeJul 30, 2024
Final Answer :
True
Explanation :
This statement is true. Asset turnover is calculated by dividing net sales by average total assets.
Learning Objectives
- Learn to determine total asset turnover and recognize its significance.