Question

What do the asset turnover ratios measure?

(a) The liquidity of the firm's current assets.
(b) Management's effectiveness in generating sales from investments in assets.
(c) The overall efficiency and profitability of the firm.
(d) The distribution of assets in which funds are invested.

Answer 1

The asset turnover ratios measure management's effectiveness in generating sales from investments in assets.

Step-by-step explanation:

The asset turnover ratios measure management's effectiveness in generating sales from investments in assets.