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In Rate of Return on Investment Analysis, the Investment Turnover

question 146

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In rate of return on investment analysis, the investment turnover component focuses on efficiency in the use of assets and indicates the rate at which sales are being generated for each dollar of invested assets.


Definitions:

Sinking Fund

A fund that accumulates cash to pay off bonds when they are retired.

Interest Revenue

Income earned from lending money or investments in interest-bearing financial instruments.

Contract Rate

The interest rate stated in a contract, such as a loan or lease agreement.

Semiannually

Occurring or conducted twice a year.

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