The ratio that explains how efficiently companies use their assets to generate revenue is:

CS Executive · Cost and Management Accounting · PYQS · December 2019
The ratio that explains how efficiently companies use their assets to generate revenue is:
(A) Revenue asset ratio
(B) Receivable turnover ratio
(C) Income ratio
(D) Asset turnover ratio

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Statement Analysis

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