Asked by Attila Szalay on May 01, 2024
Verified
For the past year, the turnover was?
A) 2.
B) 25.
C) 4.
D) 10.
Turnover
The total sales or revenue generated by a business within a specific period, or the rate at which inventory or assets are replaced.
Net Operating Income
The net income of a company before taxes and interest are taken out, but after operational costs have been deducted.
Average Operating Assets
Average operating assets are calculated as the average total assets used in day-to-day operations over a specified period, typically used in performance measurement.
- Assess performance indicators, including margin and turnover.
Verified Answer
AR
Austin RoutzongMay 02, 2024
Final Answer :
A
Explanation :
Turnover is calculated as Sales divided by Average Operating Assets. Thus, the turnover for the past year is $200,000 / $100,000 = 2.
Learning Objectives
- Assess performance indicators, including margin and turnover.