When using the asset turnover ratio, which of the following is true? a. the ratio measures how effectively a business is using its assets to generate sales. b. the assets used in computing this ratio may be the average of monthly assets. c. a high ratio indicates an effective use of assets. d. all of these choices are true.

a business is using its assets to generate sales.

Explanation:

The formula to compute the asset turnover ratio is shown below:

Asset turnover ratio = Net sales ÷ average total assets

where,

Average total assets = (Opening balance of assets + ending balance of assets) ÷ 2

And, the net sales = sales revenue - sales discounts - sales returns

Thus,  option A is correct and the rest options are wrong

answer2/345y

explanation:

the answer is a.

by: nicholas dooley