--%>
Assignment Help - homework help

What do you mean by the term turnover

What do you mean by the term turnover?

E

Expert

Verified

The term "Turnover" has numerous meanings.

For a trader or manufacturer or service provider it means net sales (i.e., cash + credit).

While whenever a bank gives a loan to any person or company they observe the turnover.

Here the turnover usually refers to the net credits in any specified period in account holder’s account.

Whereas banks own turnover is the net loans disbursed + outstanding recovery of former period - bad debts (that is, loans written off) in this period.

Considering disclosure norms in the Accounting Standards the announcement of turnover is needed. I am not sure for which industries this is mandatory and for which industries this is not.

However it is nonetheless announced.

Balance sheet of some company can be simply window dressed. Therefore to understand whether whatever gains are illustrated are actually from turnover or not the announcement of turnover becomes essential.

In case when a person or investor finds out that the turnover of some company is not high however the company is saying that they encompass big gains then he can explore in details as to how the company is making its currency.

In case when the investor finds out that the company is selling the goods to a vast quantity although not making much gain then he can examine the books of accounts to find out what are the reasons of low profitability.

   Related Questions in Financial Accounting

  • Q : Describe the term Operating Expenses

    Describe the term Operating Expenses in business accountancy?

    		•
  • Q : Determining interest rate parity

    Presently, spot exchange rate is $1.50/£ and three-month forward exchange rate is $1.52/£. Three-month interest rate is 8.0% per annum within the U.S. and 5.8% per annum within the U.K. Suppose that you can borrow as much as $1,500,000 or £1,000,000.

    		•
  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

    		•
  • Q : What is Market for foreign exchange

    Provide a complete definition of Market for foreign exchange.

    		•
  • Q : Hedging transaction exposure and money

    Compare and discuss the hedging transaction exposure by using the forward contract vs. money market instruments. When the optional hedging approaches do creates the same result?

    		•
  • Q : Retail Invoice versus Tax Invoice

    Explain the difference between Retail Invoice vs. Tax Invoice?

    		•
  • Q : Meaning of Goodwill Meaning of Goodwill

    Meaning of Goodwill: Goodwill puts the association at a good position due to which the organization is capable to earn huge profits without any additional efforts. Goodwill can’t be seen although felt. Thus goodwill is termed as an Intangible as

    		•
  • Q : What is Purchase What is Purchase .

    What is Purchase. Briefly state the definition of it?

    		•
  • Q : Why cash is so important Why cash is so

    Why cash is so important? Illustrate it.

    		•
  • Q : DM/S$ currency versus currency bid-ask

    Provided the given information, state the DM/S$ currency versus the currency bid-ask quotations? Bank Quotations              American Terms        

    		•