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5 July, 15:28

Which of the following is not an asset utilization ratio?

A) Inventory turnover

B) Return on assets

C) Fixed asset turnover

D) Average collection period

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Answers (1)
  1. 5 July, 15:38
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    B) Return on assets

    Explanation:

    Asset utilization ratio shows the length of time take on average to collect its sales. Inventory turnover, Fixed asset turnover and average collection period are all the ratio calculates the average days / times to recover the sales value. So the only return on asset is a value which deals with total net income as a percent of average assets
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