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When using the asset turnover ratio, which of the following statement is not true? a . The asset turnover ratio measures how effectively a business
When using the asset turnover ratio, which of the following statement is not true?
a The asset turnover ratio measures how effectively a business is using its assets to generate sales.
b Using this ratio compared to suppliers may be beneficial in interpreting the businesss use of assets.
c The assets used in computing this ratio may be the average of monthly assets.
d A high ratio indicates an effective use of assets.
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