Which of the following is an asset utilization ratio?Multiple Choicereturn on assetsreceivables turnoverreturn on equitycurrent ratio
Question
Which of the following is an asset utilization ratio?Multiple Choicereturn on assetsreceivables turnoverreturn on equitycurrent ratio
Solution
The asset utilization ratio among the options given is "receivables turnover". This ratio measures how effectively a company uses its assets to generate revenue. It is calculated by dividing the net credit sales by the average accounts receivable during a certain period.
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