16) Total asset turnover is used to evaluate: A. The efficiency of management's use of assets to generate sales. B. The necessit
y for asset replacement. C. The number of times operating assets were sold during the year. D. The cash flows used to acquire assets. E. The relation between asset cost and book value.
A. The efficiency of management's use of assets to generate sales.
Step-by-step explanation:
The total asset turnover is calculated by dividing the sales to the assets. It measures the ability for a company so that in efficient way it would generate the sales.
By using the assets of the company, the company is able to generate the sales that could help the company for achieving the goals and objectives
Therefore according to the given situation, the a option is correct
