Podcast
Questions and Answers
What does turnover measure in accounting?
What does turnover measure in accounting?
- The total dollar amount of unpaid customer invoices
- The total revenues of a company
- How quickly a business conducts its operations (correct)
- The percentage of a portfolio that is sold in a particular month or year
What is the purpose of calculating turnover ratios?
What is the purpose of calculating turnover ratios?
- To assess the total dollar amount of unpaid customer invoices
- To understand the percentage of a portfolio sold by a broker
- To determine the total revenues of a company
- To measure the efficiency of business operations (correct)
Which assets are commonly assessed using turnover ratios?
Which assets are commonly assessed using turnover ratios?
- Investment portfolios and cash reserves
- Total revenues and expenses
- Accounts receivable and inventory (correct)
- Fixed assets and liabilities
In the investment industry, what does a quick turnover rate generate?
In the investment industry, what does a quick turnover rate generate?
What does accounts receivable represent?
What does accounts receivable represent?
Turnover is only used to understand how quickly a company collects cash from accounts receivable.
Turnover is only used to understand how quickly a company collects cash from accounts receivable.
Turnover can be a synonym for a company’s total revenues.
Turnover can be a synonym for a company’s total revenues.
Turnover ratios are used by fundamental analysts and investors to determine if a company is deemed a good investment.
Turnover ratios are used by fundamental analysts and investors to determine if a company is deemed a good investment.
Accounts receivable turnover represents the total dollar amount of unpaid customer invoices at any point in time.
Accounts receivable turnover represents the total dollar amount of unpaid customer invoices at any point in time.
Companies cannot better assess the efficiency of their operations by looking at a range of turnover ratios.
Companies cannot better assess the efficiency of their operations by looking at a range of turnover ratios.
