Turnover Is Computed by Dividing Average Operating Assets Into

question 5

Multiple Choice

Turnover is computed by dividing average operating assets into:

• A)invested capital.
• B)total assets.
• C)net operating income.
• D)sales.

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Definitions:

Break-Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.

Cost Volume Profit Analysis

A managerial accounting technique used to analyze how changes in cost and volume affect a company's operating income and net income.