What Are Margin and Turnover? If a Division Can Increase

question 23

Essay

What are margin and turnover? If a division can increase turnover with margin constant, how will return on investment be affected?

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Definitions:

Permanent Accounts

Balance sheet accounts whose balances are carried forward to the next accounting period, including assets, liabilities, and equity accounts.

Temporary Accounts

Accounts that track financial results for a specific period before being reset by transferring the balance to permanent accounts, including revenue, expense, and dividend accounts.

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit columns to ensure accuracy in the accounts.

Additional Accounts

Accounts that are created to track or manage specific financial transactions not covered by the standard set of accounts.