Question 5 Asset turnover measures O how efficiently a company uses its assets to generate sales. O how often a company replaces its assets. the portion of the assets that have been financed by creditors. O the overall rate of return on assets. Question 6 Profit margin is calculated by dividing O net income by stockholders' equity. sales by cost of goods sold. O gross profit by net sales. O net income by net sales. Question 8 The acid-test ratio does not include inventory as part of the numerator. O does include prepaid expenses as part of the numerator. is a quick calculation of an approximation of the current ratio. does not include all current liabilities in the calculation. CALCULATOR PRINTER VERSION BACK NEXT Question 9 Swifty Clothing Store had a balance in the Accounts Receivable account of $400000 at the beginning of the year and a balance of $520000 at the end of the year. Net credit sales during the year amounted to $5750000. The average collection period of the receivables in terms of days was 365 days. O 33.0 days. O 29.2 days. O 25.4 days