Question

Asset turnover _____. A. is another term for inventory turnover B. is calculated from information found on a firm's income statement C. reveals how profitable a company is D. is calculated by dividing total assets by net sales E. is net sales divided by total assets

Answer 1

Answer: The correct answer is "C. reveals how profitable a company is".

Explanation: Asset turnover reveals how profitable a company is because it compares how well a company manages its assets to generate more income and accumulate more and more capital.