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Evgesh-ka [11]
3 years ago
13

Asset utilization ratios

Business
1 answer:
Igoryamba3 years ago
8 0

Answer:

a. relate balance sheet assets to income statement sales.

Explanation:

Asset utilization ratio measures the ability of a firm to generate revenue from each dollar of assets that it holds. It is computed using the following formula:

Asset Utilization = Revenue / Average Total Assets

Revenue is an income statement account, while average total assets is a balance sheet account, thus, the answer is a.

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