Question

    Which ratio measures the efficiency of a company in

    using its assets to generate sales?
    A Current Ratio Correct Answer Incorrect Answer
    B Asset Turnover Ratio Correct Answer Incorrect Answer
    C Interest Coverage Ratio Correct Answer Incorrect Answer
    D Net Profit Ratio Correct Answer Incorrect Answer

    Solution

    Explanation: This ratio indicates how efficiently a company is using its total assets to generate revenue.

    Practice Next