Which of the following statements is correct about the total asset turnover ratio?

Multiple Choice

The ratio is computed by dividing profit by average total assets.

The ratio assesses the firm's ability to pay its long$-$term and current liabilities as well as its current and future potential investors.

The ratio assesses the firm's ability to efficiently use its assets to generate profit from sales revenues.

The ratio assesses frequency at which the company replaces its assets with newer assets.