Podcast
Questions and Answers
Why is turnover important in business?
Why is turnover important in business?
Which of the following best defines turnover in business?
Which of the following best defines turnover in business?
What does accounts receivable refer to in the context of turnover?
What does accounts receivable refer to in the context of turnover?
Study Notes
Turnover in Business
- Turnover is important in business as it directly affects the liquidity and cash flow of a company.
- Turnover is defined as the rate at which a company sells and replaces its inventory, accounts receivable, or labor during a specific period.
- A high turnover indicates that a company is able to quickly sell its inventory and replace it with new stock, which can lead to increased revenue and better cash flow.
Accounts Receivable in Turnover
- Accounts receivable refers to the amount of money that customers owe to a company for goods or services sold on credit.
- In the context of turnover, accounts receivable turnover measures the number of times a company collects its outstanding accounts receivable during a specific period.
- A high accounts receivable turnover indicates that a company is able to collect its debts quickly and efficiently, which can improve its cash flow and liquidity.
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Description
Test your knowledge on business turnover and its importance in this informative quiz. Explore the concept of turnover, its role in accounting, and the significance it holds for businesses.
