Selected Information from the 2011 and 2010 Financial Statements of Bowen

question 2

Multiple Choice

Selected information from the 2011 and 2010 financial statements of Bowen Corporation is presented below.

Bowen had cash sales of $750 and credit sales of $615 during 2011. Cost of goods sold for 2011 was $819. Bowen's fixed asset turnover for 2011 is

• A) 2.97.
• B) 4.86.
• C) 2.53.
• D) 5.53.

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Definitions:

FVTOCI

Fair Value Through Other Comprehensive Income, a classification under IFRS for financial assets that are valued at fair value with changes recognized in other comprehensive income rather than profit or loss.

IFRS 9

An International Financial Reporting Standard that addresses the accounting for financial instruments, specifying how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.

Other Comprehensive Income

Income that is not part of net income, including unrealized gains and losses on certain types of investments, which is recorded directly in equity.

Significant Influence

The capacity to exert power over, or sway, the operating and financial policies of another entity without having control over it.