Asked by shivangi thakur on Jun 19, 2024
Verified
Total asset turnover is calculated by dividing average total assets by net sales.
Total Asset Turnover
An efficiency ratio indicating how well a company's assets are used to generate revenue from sales.
Average Total Assets
The average value of all the assets a company owns over a specific time period, calculated by adding the beginning and ending assets and dividing by two.
Net Sales
The amount of revenue generated by a company after deducting returns, allowances for damaged goods, and discounts.
- Understand methods to measure and report asset efficiency and performance.
Verified Answer
BV
Bliss VillanuevaJun 25, 2024
Final Answer :
False
Explanation :
Total asset turnover is calculated by dividing net sales by average total assets.
Learning Objectives
- Understand methods to measure and report asset efficiency and performance.