Explain the basic concept underlying all turnover ratios. Why is it advisable in computing a turnover ratio

Question:

Explain the basic concept underlying all turnover ratios. Why is it advisable in computing a turnover ratio to use an average in the denominator (for example, average inventory)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

See More Books

Question Posted: Jan 12, 2012 02:09 AM

See More Questions

Explain the basic concept underlying consolidated statements.
Explain the basic concept of ABC analysis.
Why is it advisable to set up a level with all three tripod legs on, or in, the same material (concrete, asphalt, soil), if possible?
You work for North Carolina Parks and Recreation. Do you support or oppose the idea to unionize federal and state employees? Explain your thoughts below.
Activet Corporation, a Canadian-based international company that follows IFRS 9, has the following securities in its portfolio of investments acquired for trading purposes and accounted for using the...
Sierra has hired a front office manager, Todd. What suggestions should Sierra follow to make the implementation of training more effective for Todd?
3. Which of the following is not a measure of the dispersion, or spread, of a distribution: variance, mean, or standard deviation?
Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point. a. For...
Required information [ The following information applies to the questions displayed below. ] Allied Merchandisers was organized on May 1 . Macy Company is a major customer ( buyer ) of Allied (...
Acme Bank wants to determine if a persons age (group) is associated with a preferred bill paying method. The research team gathers data using this self-administered survey card: Bill Paying Survey...
Operating Assets and Cash Flows In which category of the statement of cash flows (indirect method) should the following items appear? Depreciation of an operating asset Gain on the sale of an asset...
Analysis of Operating Assets At December 31, 2010, a company has the following amounts on its financial statements: Property, plant, and equipment ........$10,000 Accumulated depreciation...
In Exercises use the Theorem of Pappus to find the volume of the solid of revolution. Data from Theorem of Pappus The torus formed by revolving the circle about the y-axis THEOREM 7.1 The Theorem of...
Using the figure below, draw the FBD , ?Shear Force and Bending Moment diagrams and find the maximum internal moment for the beam shown. 10 kNm 10 kN 3 m
Suppose the goods market is: Y = 1800 - 100i and the LM curve Y = 500 +591, where x is the last digit of your ID number. Determine the equilibrium income (Y), interest rate (i). Explain the role of...
Complete the chart: [1] Length, L (m) Period, T (s) LogL LogT 0.10 0.63 0.20 0.90 0.30 1.00 0.40 1.27 0.50 1.42 0.60 1.55 0.70 1.68 0.80 1.80 0.90 1.90 1.00 2.02 Plot the data T vs L. [4 (title, axes...
A solid metal sphere with a diameter of 2 cm and a mass of 8 g is used for the following heat transfer experiments. You can assume the temperature throughout the inside of the metal sphere is...
2) A car 1200 kg is in a skid Force of friction 3200N and force of air resistance 1600N. Find the following i) The net force and acceleration of the car ii) The time required to stop from 95 km/hr...
Discuss the differences among the various types of responsibility centers. LO1
If the annual fixed costs are 54,000 dinars, the occupation expense represents 20%, the contribution margin is 25%, and the unit selling price is 40 dinars. Required: Calculate the closing point of...
Each of the pictures below shows a molecular view of a system undergoing a change. In each case, indicate whether heat is absorbed or given off by the system and whether expansion work is done on or...
You are comparing two companies in the same industry. You have determined that May Corp. depreciates its plant assets over a 40-year life, whereas Won Corp. depreciates its plant assets over a...
What classifications and amounts are shown in PepsiCos Note 4 to explain its total property, plant, and equipment (net) of $11,228 million?
Tatum Refrigeration Company trades in an old machine on a new model when the fair market value of the old machine is greater than its book value. The transaction has commercial substance. Should...
Trey is single and has no qualifying child. His adjusted gross income is $12,355. In order to claim the Earned Income Tax Credit, he must meet which of the following requirements? He cannot be the...
Caspian Sea Drinks needs to raise $74.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.69 next year, which will grow at 3.45% forever and the...
i need help in B and C Integrative Case 5-72 (Algo) Cost Estimation, CVP Analysis, and Decision Making (LO 5-4.5.9) Luke Corporation produces a variety of products, each within their own division....

Explain the basic concept underlying all turnover ratios. Why is it advisable in computing a turnover ratio

Question:

Step by Step Answer:

All turnover ratios are a measure of the activity for a period compared with the inves...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

Students also viewed these Accounting questions